EUR/USD Price Forecast – Euro Continues to Reach Higher

The Euro has rallied a bit during the course of the trading session on Wednesday, as we continue to see plenty of bullish pressure. Remember, the Euro is essentially the “anti-dollar”, so when you look at the Euro, you need to think of this in terms of how the US dollar is behaving. The US dollar has fallen off a bit during the past couple of weeks, and we continue to see the Euro benefit from this. Furthermore, the yield differential has narrowed a bit between the bond markets of Germany and the United States, so that continues to see another catalyst for this market to go higher.

EUR/USD Video 10.06.21

If we can break above the 1.23 handle, then it is likely that the 1.25 level will be the next target. All things been equal, we are in an uptrend so that is the thing that you should pay the most attention to, and pullbacks at this point in time should offer buying opportunities that you can take advantage of based upon “value.” Underneath, the 1.20 level is a massive support level that should be paid close attention to as well, so I consider that to be the “floor the market.”

It is not until we break down below the 1.20 level that I would consider shorting this market from any larger amount of conviction or position size, so at this point in time I think what we are looking at is a market that is trying to finally pick up enough momentum to break out to the upside and reach towards the 1.25 handle sometime later this year.

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