EUR/USD Price Forecast – Euro Continues to Test 200 Day EMA

The Euro has rallied a bit during the course of the trading session on Tuesday, as we continue to flirt with the 1.19 level. That being said, we also have the 200 day EMA and the 50 day EMA sitting just above, which of course will have an influence on the markets as well. Ultimately, the market is likely to continue to be very noisy between now and Friday, as we head towards the jobs number that morning. Furthermore, we also have a certain amount of questions when it comes to the interest rate differential between the United States and Germany, which is a major driver of where this market goes.

EUR/USD Video 04.08.21

Underneath, we have the 1.1850 level that could offer support, as it has been important more than once. If we break down below there, then the market is likely to go looking towards the most recent lows which is near the 1.1750 level. If we were to break down below there, then it is likely we could go looking towards the 1.16 level underneath, which has been massive support in the past. That level being broken to the downside could open up a bigger move, and while that is certainly possible, I do not necessarily think it happens anytime soon.

In general, I think the market will continue to see a lot of noisy behavior between now and then, and therefore I would look more or less towards short-term sideways action with more of a tilt towards the downside than anything else. Because of this, the market is likely to continue to see a lot of noisy behavior but more short-term movement than anything else.

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