EUR/USD Price Forecast – Euro Testing Support

The Euro has gone back and forth during the trading session on Monday just above the 1.20 level that has been important more than once, and it should offer significant support in that general vicinity. Furthermore, the market is likely to see support down to the 1.19 handle, so in general I think that there will be buyers in this area. That being said, this is all about stimulus in the United States, but we also have something to think about in Europe as well.

EUR/USD Video 2.03.21

The European Union is currently worried about lockdowns and of course the COVID-19 vaccinations that seem to be stalling a bit in that area. Furthermore, the market is digesting the weak economic figures that we have seen coming out of the EU as well. In general, we are in a significant uptrend, and we are also forming something that could be thought of as a bullish flag but really at this point, I think what we are looking at more than anything else is more or less a sideways market between the 1.20 level and the 1.23 level.

We have massive amounts of Federal Reserve governors speaking this week, and as a result there will probably be some volatility in the US dollar but quite frankly, I just do not see us breaking out of this range anytime soon. The 50 day EMA is basically sideways, so that tells you that the market is more or less sideways as well. With that being the case, I think you continue to look at this as a market that you have to look at through the prism of a range bound system more than anything else, as it does not seem to have a lot of momentum currently.

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