EUR/USD Price Forecast – Euro Pulls Back From 50 Day EMA

The Euro has pulled back just a bit after initially trying to reach the 50 day EMA on Monday morning. That being said, the Market ran out of momentum, and we seem to be following a downward rejection yet again. That being said, we are very much in a consolidation phase so I would not get overly aggressive to the downside, but we have been finding the 1.1375 level as very resistive, while finding the 1.1225 as massive support.

EUR/USD Video 04.01.22

It is worth noting that the most recent lows continue to grind higher, so it does at least suggest that perhaps we are trying to find some type of bottom. Keep in mind that the Friday trading session will be the jobs number, so that of course will be rather important to pay attention to the reaction, but between now and then I believe that we are probably going to chop back and forth but clearly Monday does suggest that perhaps there is a lot of selling pressure to entering the market, and that we are not ready to turn things around and start rallying. That being said, I suspect that within the next week or two we should have some clarity.

If we were to break down below the 1.12 level, then it would tell us that the longer-term downtrend continues, and that we are probably going to go looking towards the 1.10 level underneath. On the other hand, if we turn around a break above the 1.14 handle, then it is likely that we could go looking towards the 1.16 level above.

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