EUR/USD Price Forecast – Euro Gives Up Early Gains

The Euro has initially tried to rally during the trading session on Monday but gave back the gains in order to form a less than impressive candlestick. At this point, it looks like the Euro may have a bit of a pullback ahead of it, perhaps reaching back towards the 1.20 handle again. The 1.20 level is a large, round, psychologically significant figure, so one would have to believe that there should be a certain amount of support in that vicinity.

EUR/USD Video 27.04.21

Furthermore, we also have the 50 day EMA sitting underneath there and curling higher if so, that is yet another reason to think that perhaps this could work out quite well for the buyers given enough time. Obviously, you would need to see some type of supportive daily candlestick in order to get involved, and quite frankly at this point in time I think traders will be all over the place as far as risk appetite. Remember, we are in the midst of earnings season in America, so there could be some noise coming from Wall Street as well.

If we do break down below the 50 day EMA, then it is likely that the Euro will continue to fall much further. It is a little early to call that trade yet, but if it does happen then I think the market probably goes looking towards the 200 day EMA next. At that point in time, longer-term traders will start to look at the pair as possibly forming a downtrend. At this point though, it looks as if a pullback is probably going to attract a certain amount of attention.

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