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EUR/USD Price Forecast – Euro Continuing to Hang Around 200 Day EMA

By:
Christopher Lewis
Published: Jun 24, 2021, 13:22 UTC

The Euro has rallied a bit during the course of the trading session on Thursday, as we continue to hang about the 200 day EMA.

EUR/USD

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The Euro has rallied a bit during the course of the trading session on Thursday, as we continue to hang around the widely publicized 200 day EMA. At this point in time, I think the market is probably going to continue to look at this as a major decision point, and if we can break above the shooting star from the Wednesday session, that would of course be a very strong sign. However, if we were to turn around a break down below it, that could send this market to test the lows at roughly 1.1850 again.

EUR/USD Video 25.06.21

On a break to the upside, the 1.20 handle would probably be targeted, and if we can break above there then it is very likely that we go looking towards 1.2150 handle. I do think at the very least you are going to get a lot of choppy behavior, so it makes a certain amount of sense that we would be best served by being cautious about the overall position size if you have own, due to the fact that this market does tend to grind more than anything else.

I believe we are at a major decision point when it comes to this pair, and the next couple of weeks could be crucial for the longer-term move. Keep in mind that the Federal Reserve had recently suggested that they were going to have to tighten monetary policy, and of course there have been several Federal Reserve governors suggesting that they would have to tighten relatively soon, so that has been part of the pressure. However, Jerome Powell has walked back some of that hawkish talk, causing more confusion than anything else.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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