EUR/USD Price Forecast – Euro Continues to See Upward Pressure

The Euro initially tried to rally during the trading session on Monday but gave back the gains in order to show signs of exhaustion. Nonetheless, this is a market that has plenty of support underneath and I think we do continue to go higher over the longer term. With that in mind, I like the idea of buying these dips and reaching towards 1.23 level of the longer-term, but we might be just a bit overbought.

EUR/USD Video 02.06.21

The hammer from Friday showed true resiliency, and as a result I think we are going to continue to see buyers jumping in and taking advantage of any pullback that we get. The 1.21 level seems to be supportive as well, right along with the 50 day EMA underneath. The 1.20 level is also an area that I think a lot of people will be paying close attention to, as it is a large, round, psychologically significant figure, and an area where we have seen a lot of people pay attention to in the past. In fact, the 200 day EMA is starting to reach towards that area, so that could also have quite a bit of supportive action in that general vicinity.

To the upside, the 1.23 level is going to be broken above and therefore I think the market could go towards 1.25 as when you look at the longer-term charts, as the 1.25 level has been important more than once and of course is psychologically important. That is the target for a lot of analysts out there by the end of the year, and I have to agree.

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