EUR/USD Price Forecast – Euro Recovers for Thursday Session
The Euro has rallied a bit during the course of the trading session on Thursday as we continue to see a lot of noise in general. That being said though, we are in an uptrend and that is what you need to pay the most attention to. Ultimately, I think that we have a significant amount of upward pressure, so these pullback should continue to be a buying opportunity as the US dollar is most certainly on its back foot. With this being the case, I like the idea of going long on the short-term pullbacks and I do think that eventually we go looking towards the 1.23 handle. It is at that level that we have the potential for a much larger break out.
EUR/USD Video 21.05.21
Most pundits out there think that the Euro is going to go to the 1.25 handle. Most analysts will go on about the 50 day EMA, the current wave count, and the like. The reality is that it comes down to the fact that European bonds are starting to offer more yield, so there is a bit of a “readjustment” to the differential. Yes, the United States bond rates have been rising as well, but you have to keep in perspective the German bonds have been offering negative yields for quite some time. Furthermore, the recovery in assets on the continent is starting to widen, with even the Hungarian index gaining roughly 7% this month, and although they use their own currency, it shows just how broadening the strength is becoming in the general region.
Furthermore, the EU is likely to reopen rather quickly this summer, because quite frankly the momentum is pushing everything in that direction. Beyond that, the most obvious reason to get long of this pair is that you are in an uptrend. This is not to say that you jump in randomly, but that is definitely the direction you should be looking at. In fact, it is not until we break down below the 1.20 handle that I would be concerned, and even then, it is not necessarily a signal to start selling.
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