EUR/USD Price Forecast – Euro Quiet to Kickoff Week

The Euro rallied slightly during the trading session on Monday, but at this point we are still struggling to pick up any serious amount of momentum. Because of this, it looks as if we are going to continue going sideways in the short term. We are sitting just above the 50 day EMA which of course is a technical indicator that people will pay close attention to. Even if we do break down below the 50 day EMA though, I think there should be plenty of support underneath near the 1.20 level which extends down to the 1.19 level. I think in general it is going to be difficult to break down below there, but if we did it is likely that we could go down to the 200 day EMA next.

EUR/USD Video 16.02.21

If we break above the 1.22 level, then it is possible that we could go to the 1.23 level above. The 1.23 level is significant resistance that extends to the 1.25 handle. In general, this is a market that I think we will find buyers underneath, but I do not know that we can break out of this entire 300 point range anytime soon. With this being the case, I think we continue to see a lot of back and forth. If you are a short-term range bound trader, then this might be the market for you. Otherwise, I think you are simply best served waiting at the top of the bottom of the range to place a trade in the opposite direction.

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