EUR/USD Price Forecast – Euro Rallies After ECB Sits TightThe Euro rallied a bit during the trading session on Thursday, as we have bounced from the 50 day EMA.
The Euro rallied a bit during the trading session on Thursday to test the highs of the previous session as the ECB did very little. That being said, the market has also bounced from the 50 day EMA which of course is a technical signal, but at the end of the day I think the market is essentially stuck in a 300 point range. The bottom of this range, at the 1.20 level extends down to the 1.19 level as far as support is concerned. On the other hand, the 1.23 level above is resistance that extends all the way to the 1.25 handle. The market continues to be one that works against the value of the US dollar, and with the Democrats in control of all three branches in the United States, it is possible that we continue to see the US dollar get smoked.
EUR/USD Video 22.01.21
To the downside, it is not until we break down below the 1.19 level that I would be concerned about the overall trend, and we are far from seeing that happen. Ultimately, this is a market that I think continues to see a “buy on the dips” type of mentality, but as far as breaking out is concerned, I think it is going to be very difficult to do so anytime soon, simply due to the structure of the market right now, as the markets have seen massive implications at multiple times in these general vicinities. Ultimately, this is a market that has decided it prefers the upside more than the down but whether or not we have enough momentum to make that happen for a longer-term move is an open question.
75% of retail CFD investors lose money
For a look at all of today’s economic events, check out our economic calendar.