EUR/USD Price Forecast – Euro Powers Into Resistance

The Euro has rallied significantly during the trading session on Tuesday to reach towards the 1.1850 level, before pulling back a bit to hang around the 50 day EMA. The 1.1850 level above has been significant resistance a couple of times, and the fact that we shied away from there should not be a huge surprise. That being said, we have the jobs number coming on Friday and that will have a big influence on what happens next with this pair.

After all, the US dollar is half of the equation, and that cannot be underestimated on Friday. A lot of traders out there are paying close attention to the entirety of the tapering conversation, and now that both central banks are stepping away from some bond buying, it does make a certain amount of sense that we pick up volatility.

EUR/USD Video 01.09.21

If we were to turn around a break down below the 1.1775 level, then I think we continue to plow towards the 1.16 level which was my initial target. Although we have seen a nice bounce from here, it is obvious that we have a lot of choppiness ahead of us, so I would not get too big into any position that I was involved in. We are still traveling in the downward sloping channel that we have been in sense late May, so keep that in mind as well.

If we break above the 200 day EMA, it would coincide with breaking above that channel, and therefore I think I would start to nibble away at a position, but I would do so slowly and build up as the position worked in my favor.

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