EUR/USD Price Forecast – Euro Continues to Rally After Jobs Number

The Euro initially pulled back during the trading session on Friday but has seen buyers come back in just above the 50 day EMA in order to turn things around. That being said, the market looks as if it is trying to reach towards the highs again, as the US dollar itself seems to be in a significant amount of trouble. Whether or not we can break out to the upside is a completely different question, and therefore I think what we are looking at is a resumption of the overall trend to try to break above the 1.23 level above.

EUR/USD Video 07.06.21

If the market was to break above the 1.23 handle, then it is likely that we could go looking towards 1.25 level. That is my longer-term target over the next six months or so, but this pair does tend to be very choppy and of course as a result you need to look at this more or less from a short-term traders type of environment, looking to buy dips more than anything else.

To the downside, the 1.20 level is a major support level, assuming that we can even get down to that area. So far, the 50 day EMA has been somewhat reliable and therefore I look at that as my “first line of defense” for this market. Looking at this chart, I do not see any reason to short this market and look at the last couple of days as simply another bump along the road to reach towards the highs yet again.

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