EUR/USD Price Forecast – Euro Runs Into Overhead Resistance

The Euro has rallied again during the Friday session, reaching towards the 1.2150 level. This is an area that has seen a significant amount of action over the last couple of weeks, so it is not a huge surprise that we may have stopped in this general vicinity. That being said, this is a market that is going to remain choppy for quite some time from what I can see.

The 50 day EMA is running right between the two candlesticks of the last 48 hours and is relatively flat. As a widely followed longer-term trend indicator, this shows just how “flat” the market is right now.

When you look at the overall charts, I do believe that the 1.20 level underneath is significant support that extends down to the 1.19 handle. All things being equal, I am looking at that as an area of the potentially bullish traders, but I also see that there is noise above that is going to cause a few headaches here and there for traders. I specifically am referring to the 1.23 level, which I believe extends all the way to the 1.25 handle.

This is a major resistance barrier that will have to be dealt with if this market is truly going to take off to the upside for a more sustained move. In the meantime, I think we are just bouncing around in a 300 PIP range, with probably a little bit more proclivity to be in the bottom half of that area, at least in the short term as it does not look like we have anywhere to be anytime soon.