EUR/USD Price Forecast – Euro Continues to Flirt With 1.20The Euro has rallied again during the course of the trading session on Friday, with the 1.20 level being significant resistance again.
The Euro has tried to reach towards the 1.20 level, reaching towards the massive resistance that we had seen previously. At this point time, the market is sitting above the 50 day EMA so that is in theory a bullish sign, but we need to get a daily close above the 1.20 level in order to finally move higher for a bigger move. Until then, I think it is only a matter of time before we get sellers yet again. However, if we were to turn around a break down below the 50 day EMA, then it is likely that this market breaks down significantly.
EUR/USD Video 19.04.21
On the other hand, if we break above the 1.20 handle, that would be a very bullish sign for the Euro, sending it much higher. At that point, I believe that the market is probably going to go looking towards the 1.22 handle, possibly even the 1.23 level. All things being equal, this is a market that would signal the fact that the US dollar is in serious trouble. I think at this point though, we are trying to determine whether or not that actually going to be the case. Ultimately, this is a market that I think is going to move based upon yields in America, and of course the risk on/risk off type of attitude of traders around the world.
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The European Union of course is struggling with vaccinations and a slowing of the economy, and as a result I think that what we are looking at is a representation of that situation. The United States is most certainly leading the way, so it does make a certain amount of sense that the Euro struggles to go much higher.
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