EUR/USD Price Forecast – Euro Continues to Look Soft

The Euro fell a bit during the trading session on Monday but remains in a somewhat tight and choppy range. That being said, the market is likely to continue to see a lot of back and forth on short-term charts, but all things being equal this is a market that is going to continue to pay attention to a lot of things that are negative for the European Union.

EUR/USD Video 30.03.21

The 200 day EMA currently sits at the 1.1830 level, an area that has been important more than once. This market continues to see noise due to the fact that the coronavirus issues in the European Union, as the EU simply cannot seem to distribute vaccines. Beyond that, there are a lot of concerns when it comes to the EU economy as we continue to see a lot of lockdowns. Ultimately, this is a market that I think probably goes lower, especially if we see another spike in yields when it comes to the US treasury market, but regardless I think the EU is so far behind so many other major economies that rallies at this point in time are to be sold into, especially as soon as we see some type of exhaustion.

To the downside, I still have a target of 1.16 underneath, which is the next major area of support. However, you should keep in mind that the pair is notoriously choppy, so I would not look for explosive moves right away and it is going to be noisy in general so a lot of patience will be needed in order to try to profit from what I think is a continuation.

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