EUR/USD Price Forecast – Euro Continues to Push

The Euro initially pulled back a bit during the trading session on Friday but then found enough buyers underneath to continue to push this market to the upside. Ultimately, this is a market that I think is looking to go much higher, reaching towards the 1.22 level right now. Short-term pullbacks will continue to attract buyers trying to take advantage of the biggest momentum move, which is obviously to the upside. All things being equal, the 1.20 level underneath would offer significant support from a psychological standpoint as well as a structural and the fact that we have the 50 day EMA sitting right there and turning higher.

EUR/USD Video 11.05.21

To the upside, I do think that it is going to be a bit of a struggle to get through, but it certainly looks as if we are going to make an attempt to do so. The 1.23 level is an area where we have seen a lot of resistance previously, so that might be the longer-term target, but this pair does tend to be very messy and therefore I think a lot of what we will see is a very choppy move to the upside. However, we have had a couple of impulsive candlesticks on the daily timeframe that certainly seems to suggest that we are ready to go much higher. I do not have any interest in shorting this pair right now, unless of course we were to break down below the 1.20 handle. That of course is something that does not look very likely to happen anytime soon. Ultimately, this is a market that probably is going to be a “buy on the dips” type of situation.

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