EUR/USD Price Forecast – Euro Gives Up Early Gains

The Euro has shown itself to be a little bit exhausted during the trading session on Thursday as we broke above the 1.2150 handle, only to turn around. Whether or not we can break above the 1.22 level it is likely that we will eventually try regardless. At this point, the market probably needs to pullback in order to find some buyers, but it looks to me like the 1.21 level will probably offer short-term support. In other words, I expect more choppy behavior out of this pair, but that is par for anyways.

EUR/USD Video 30.04.21

To the downside, I believe that the 1.20 level and the 50 day EMA both would offer a bit of support, as it looks like the US dollar is on its back foot. Furthermore, with Joe Biden looking to spend $10 trillion at the very least this year, one would have to think that the US dollar will probably take a bit of a hit due to that. The European Union is starting to show signs of life again, and the fact that we have recently seen a shot straight up in the air does suggest that there has been a significant shift in attitude, and therefore we need to look at the market through the lens. While I am not necessarily overly bullish on the European Union, my opinion does not matter, because at the end of the day it is all about what price does. I do think that we go higher but I also recognize that we are overstretched at this point to look at pullbacks as potential gifts that can be bought into.

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