EUR/USD Price Forecast – Euro Gives up Early Gains

The Euro initially tried to rally during the trading session but found the 1.22 level a bit too resistive, so we pull back to show signs of weakness. The 50 day EMA underneath is supportive, and of course looking very likely to attract a lot of attention. All things being equal, this is a market that I think is trying to build up the necessary momentum to break above the 1.22 handle and go looking towards 1.23 level above. That 1.23 level is massive resistance that extends to the 1.25 handle, so I do not necessarily think that we are going to be breaking anytime soon, but this is a market that I think it is essentially stuck in a range.

The candlestick is a bit negative, but at the end of the day I do not think it really makes much difference due to the fact that the 1.20 level underneath is support that extends down to the 1.19 handle. With this being said, I think that we stay in this 300 point range roughly, as there is nothing to push this market in one direction or the other currently.

The European Union of course is struggling with the coronavirus lockdowns and the like, so that is a problem, not to mention the fact that there are a lot of concerns when it comes to the lack of vaccines available. However, the United States is also looking at potential stimulus, so it does suggest that we will probably see the US dollar fall a bit as well. In general, this is a market that I think is going to bounce around in this range for the foreseeable future.