EUR/USD Price Forecast – Euro Pulls Back During Quiet Session

The Euro dropped a bit during the course of the trading session on Friday, which of course was Good Friday. That is a bank holiday and of course liquidity will be very in that scenario. The jobs number of course also added to the possibility of thin volume, which is exactly what we have seen. Looking at this chart, it looks to me like we are ready to go further to the downside. We did have a bullish candlestick on Thursday, but one would have to think that perhaps we were focusing more on getting out of the market ahead of thin conditions, so I am not too sure what to read into the Thursday candlestick quite yet.

EUR/USD Video 05.04.21

Looking at the chart though, it is obvious that the 1.16 level is the next major support level, so I think that we will probably go looking towards that region given enough time. Short-term rallies will probably be sold into, and therefore I am looking for signs of exhaustion that I can take advantage of. The 200 day EMA above is a major resistance, sitting at the 1.1830 level. If we were to break above there, then it is possible that we could see a little bit more of a move to the upside. Nonetheless, this is a market that looks like it is ready to continue going lower, so I would not be surprised at all to see the 1.16 level tested sooner rather than later. At this point in time, I have no interest in buying but breaking the 200 day EMA would of course have me taken a look at the possibility.

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