EUR/USD Price Forecast – Euro Recovers

The Euro initially fell during the trading session on Wednesday to reach down to about half of the candlestick from the previous session. We have since seen a complete turnaround due to not only support, but the fact that the CPI numbers in the United States were a huge miss. This shows that perhaps the idea of inflation in the United States is a stretch to say the least. That being the case, I do think that it is only a matter of time before the market continues to reach towards the 1.20 level above, which of course has been crucial more than once. That being overcome would be very bullish for the Euro and could send this market much higher.

EUR/USD Video 11.03.21

The 200 day EMA has offered significant support which would attract a lot of attention by longer-term traders, so this of course is worth paying attention to as well. After all, it is considered to be a trend defining indicator by a lot of “buy-and-hold” type of traders out there. Another thing to pay attention to is the 10 year yield, which has been a major driver of US dollar strength for some time. If those patterns return, that could be a major driver of this pair lower, but at this point one would have to say there seems to be momentum shifting to the upside yet again. Keep in mind that if those Bond yields calm down, then we can start to focus on the idea of stimulus driving down the value of the greenback. This has been a brutal rally for the greenback, but I would not be considering the Euro “out of the woods” until we retake the 1.20 handle.

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