EUR/USD Price Forecast – Euro Testing 50 Day EMA

The Euro went back and forth during the course of the trading session on Tuesday, as we continue to see a lot of noise out there when it comes to where we are going next. With the market showing and acceptance of the Federal Reserve statement when it comes to waiting on raising rates, it appears that the CPI numbers were not enough to spook the market, and the Euro has rallied rather significantly. The Euro is currently sitting at the 50 day EMA, which of course will attract a certain amount of attention in and of itself.

EUR/USD Video 14.04.21

If we break above here, then the Euro is likely to go looking towards the 1.20 level, where one would expect to see a lot of noise. That is an area that is a large, round, psychologically significant figure, that people will be paying close attention to. Ultimately, this is a market that I think continues to see noisy behavior, but that is typical for the Euro. If we break above the 1.20 handle, then I believe that the longer-term upside bias finds itself in control again. With that being the case, I would then start buying the Euro, reaching towards the 1.23 level.

If we break down below here and take out the 200 day EMA, then I would be looking for a return towards the 1.16 level underneath, which of course has been crucial more than once. That area extends support all the way down to the 1.15 handle, so I do not anticipate a huge slice through it anytime soon, but certainly a retest of that area could make a certain amount of sense.

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