EUR/USD Price Forecast – Euro Continues to Reach Towards the 50 Day EMA

The Euro has rallied quite significantly during the trading session on Wednesday to reach towards the 1.19 level, which is also where we see the 50 day EMA. We had recently made the “death cross”, so I think it could offer a bit of resistance as we have seen all week. In other words, I think we continue to go back and forth, and grind sideways until we get the jobs number. The job summer comes out on Friday, so I think the next couple of days will simply be more of the same.

EUR/USD Video 05.08.21

Underneath, I see the 1.1850 level as potential support, just as I see the 1.19 region as resistance. Granted, sometimes they try to front run the numbers, but we are still trying to figure out where we are going to go longer term, and I think we get clarity until Friday. If we break above the 200 day EMA then it is obvious, they are going to try to push the Euro towards 1.20 handle, but then again as I record this video and write this article, the candlestick looks the same during the previous session. We continue to see sellers, so I would not necessarily jump into this market right away.

That being said, if we do break down below the bottom of the range for the trading session on Wednesday, we probably go looking towards 1.1750 level which would be a simple continuation of the massive selling that we had seen as of late. Pay close attention to those 10 year yields in America, because money is flowing into the bond market and if that is going to be the case that can help the greenback.

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