EUR/USD Price Forecast – Euro Continues to Grind Higher

The Euro initially fell during the trading session on Monday but then turned around to show signs of resiliency yet again. The market looks as if it is trying to grind towards the upside, perhaps reaching towards the 1.23 level over the next several weeks. If we can break above that level, then it is likely that we could go looking towards the 1.25 handle, which is the longer-term target of most pundits. This will be especially true if we continue to see massive stimulus coming out the United States, although it must be noted that the Congress has not exactly been quick to put things to work.

EUR/USD Video 09.06.21

That being said, the trend is most decidedly to the upside as of late, and I think that something that you still need to pay attention to. When you see the market pull back the way it has and bounce from the 50 day EMA, then you have to ask whether or not this is the beginning of some type of weakness, or if it is something to do with volatility and consolidation? At this point, I believe it is the latter of the two, but obviously I will keep an eye to the downside in case something changes.

If we did break down below the 1.20 handle, then it is possible that I might start selling, as I think the market could go down towards the 1.1830 level underneath, which is an area in the past that has been important more than once. At this point in time, the market likely continues to be choppy, but I think also continues to grind higher based upon sentiment.

For a look at all of today’s economic events, check out our economic calendar.