EUR/USD Price Forecast – Euro Finding Support at 50 Day EMA Again

The Euro initially pulled back during the trading session on Tuesday to reach down towards the 50 day EMA again. We have also found that level to be supportive again, and that does suggest that we are going to try to continue the overall uptrend. That being said, we are also roughly in the middle of larger spots on the chart that have much more influence. The spots of course are the 1.23 level above, and the 1.20 level underneath. Ultimately, I think that we are simply bouncing around in this area and trying to figure out where to go next.

EUR/USD Video 27.01.21

It should be noted that the Wednesday FOMC meeting and announcement could have a major influence on this pair, but we also have to worry about the ECB stepping in and doing more as well. I think we are essentially going to see a lot of back and forth in general, carving out this 300 PIP range for more of the consolidation range. All things point to more back-and-forth trading, but it certainly seems to have more of an upward bias.

I think at this point we are looking at simple range bound trading, and as we are in the middle of the range is difficult to imagine a scenario where you should be piling into this pair right now. However, if you were to be forced to trade this pair, you would probably be better off looking higher than lower. Regardless, there are going to be other pairs out there that offer better opportunities in the short term.

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