EUR/USD Price Forecast – Euro Finds Pressure Again

The Euro fell during the trading session on Monday to kick off the week on the back foot. That being said, there is a significant amount of support underneath at the 1.20 level that extends down to the 1.19 handle. With that being the case, it is very likely that we will continue to see noisy trading in this general vicinity, and I do expect that sooner or later the support will come back into play. However, if the market were to break down below the 1.19 level it would certainly threaten the overall trend that we have been in and could have the ramifications of perhaps reevaluating the entire situation.

EUR/USD Video 02.02.21

Currently, I think that we are essentially stuck in a range between the 1.20 level and the 1.23 level above, and therefore I would not get overly excited about much here. I believe that this will probably be more or less a range bound type of situation, and range bound trading strategies will probably continue to be the best way to trade the market. Both of these central banks are extraordinarily loose right now and obviously both areas have to worry about the coronavirus pandemic, so as long as that is the case it is very possible, we will continue to see lackluster performance in this currency pair.

For what it is worth, we are currently trading right around the 50 day EMA, and that typically will attract a certain amount of attention as well, so that may only exacerbate the choppiness in the short term, as the world sits around in ways to see what is going to happen with stimulus coming out of the United States.

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