EUR/USD Price Forecast – Euro Continues to Plow Higher

The Euro has rallied again against the US dollar to recapture the 1.21 level during the day. The 50 day EMA attracts a certain amount of attention as well, so it should be no surprise that the market is reacting the way it is in this general vicinity. That being said, there is a lot of resistance just above, so I think that we are probably going to continue to see a struggle to break out significantly. At this point, if we can break above the 1.22 handle, then it is very likely that the market goes much higher. The 1.23 level would be massive resistance, as it has already shown itself to be important.

EUR/USD Video 10.02.21

The support level underneath extends all the way to the 1.19 handle, so we could drop that far before truly breaking down. If we did break down below the 1.19 level, the market is very likely to see a significant break down at that point. That does not look to be likely in the short term, but it is an area that you need to pay attention to. At this point, the market looks as if it is likely that we are going to move back and forth, consolidating between the 1.20 level and the 1.23 level. This makes sense because the Euro tends to chop around more than anything else. Focus on the lack of coronavirus vaccinations in the EU and the massive amount of stimulus coming out of the United States will continue to push this market back and forth, thereby giving is essentially a 300 point range. In the meantime, we need to break that 1.22 level to make a move towards the top of the previously mentioned range.

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