EUR/USD Price Forecast – Euro Pulls Back

The Euro initially tried to rally during the trading session on Wednesday but gave back the gains to form a bit of a negative candlestick. Quite frankly, the 1.22 level has been offering resistance to begin with, and with the 10 year yields spiking the way they have, the US dollar picked up a bit of strength during the day. At this point in time, I think the market is going to continue to be very noisy in general, as we grind back and forth. The 50 day EMA is relatively flat, so that of course will come into play as well as it shows that momentum is slowing down.

EUR/USD Video 25.02.21

We have a bit of a “push/pull” situation here with the pair, as the United States is seeing higher interest rates, but at the same time we have stimulus. Those are conflicting points, and quite frankly that will cause a lot of choppiness in this market. With that being the case, I think that the larger range between the 1.20 level and the 1.23 level continues to be where we bounce around.

I am not sure exactly what will cause this market to continue in one direction or the other, but obviously we need some type of catalyst in order to break out of this range, so with that being the case it continues to be very choppy to say the least. I do think that it is only a matter of time before it happens, but right now it will be very noisy and therefore more of a short-term trading type of situation where you may want to pay attention to range bound systems that focus on one hour charts or even four hour charts.

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