EUR/USD Price Forecast – Euro Pulls Back Towards Major Support

The Euro has pulled back a bit during the trading session on Thursday to reach down towards the 1.20 level, which is a large, round, psychologically significant figure. The support extends down to the 1.19 level, so if we were to break down below there the market is likely to go much lower. The 200 day EMA is reaching towards that general vicinity, so it could be a bit of a fight. However, if we continue to see a lot of pressure upwards in US yields, that might be the catalyst to send this market much lower.

EUR/USD Video 5.03.21

On the other hand, we could bounce from the 1.20 level, bouncing towards the 50 day EMA above, possibly even towards the 1.22 level. In general, this is a market that I think is going to remain in rather noisy and choppy, so it is very likely that the market is simply going to undulate back and forth between now and the Non-Farm Payroll figures coming out, so therefore it is difficult to get overly invested in this pair one way or another. In general, I think that we are simply looking at noisy and sloppy trading in the short term and given enough time we will probably have to make some type of bigger move, but we are not there yet so short-term range bound trading continues to be the most likely of plays for traders out there, so I would not expect much between now and 8:30 AM Friday morning on the East Coast of the United States.

For a look at all of today’s economic events, check out our economic calendar.