EUR/USD Price Forecast – Euro Pulling Back From the 50 Day EMAThe Euro has pulled back a bit during the trading session on Friday as the market pulled back from the 50 day EMA again.
The Euro has broken down a bit during the trading session on Friday, as we continue to see a lot of noise in this market in general. The 50 day EMA above is of course an indicator that a lot of people pay attention to, so it makes sense that we may have seen some selling there. Recently, the Euro has had a nice recovery but at the end of the day it still needs to move towards the significant support level near the 1.16 level. That is an area that has been important more than once in the past, so it does make sense that we would go down there to test it again.
EUR/USD Video 12.04.21
Looking at the Euro, one has to keep in mind that it will be highly influenced by ECB bond buybacks, and of course the yields in the US bond markets. Ultimately, this is a market that should be paid close attention to right along with the yield differential between the two central banks. At this point, the market is likely to see a little bit of a pushback, but if we can break above the 50 day EMA it might open up the possibility of reaching towards the 1.20 handle. That is a level that I think would cause a lot of resistance.
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If we can break down below the 200 day EMA, then the market is likely to go looking towards the lows again, near the 1.17 handle. From there, then I think it opens up a move down to the 1.16 level which is essentially the beginning of 100 points worth of support.
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