EUR/USD Price Forecast – Euro Stalls

The Euro has gone back and forth during the trading session on Monday as we are trying to decide what to do with the 1.22 handle. The 1.22 handle is an area that has caused a bit of noise multiple times, and therefore I think we are simply going back and forth to try to figure out what we are going to do with this psychological and structural barrier. If we can break above the 1.22 handle, then it opens up the possibility of a move towards the 1.23 level.

EUR/USD Video 18.05.21

Underneath, the 50 day EMA is breaking above the 1.20 handle, an area that is a large, round, psychologically significant figure, which of course attracts a lot of attention in and of itself and is an area where we have seen both support and resistance. At this point, I believe that the market will try to get some type of momentum to the upside going again, and I think that it would be very difficult for the market break down below the 1.20 handle.

If it does, that could open up further selling but right now I think we are simply trying to build up the necessary momentum to make the next move higher as the US dollar continues to get eviscerated. However, keep in mind that the pair does tend to be very choppy so it would not be a huge surprise at all that we would simply trade in a range between 1.20 and 1.22 for the next several days, if not weeks. Nonetheless, we are in an uptrend despite the fact that we recently had a very significant pullback.

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