EUR/USD Price Forecast – Euro Testing Top of Short-Term Range

The Euro has rallied somewhat significantly during the course of the trading session on Friday but continues to be stuck in a bit of range. The question now is whether or not it can break out above the 1.21 handle? If it does, then we could be looking at a move towards the 1.22 handle. The 1.22 handle is an area that has seen a lot of selling pressure, so I think it will be interesting to see how this plays out. After that you then have the 1.23 handle causing a significant amount of resistance as well. In fact, I think that level probably will be broke anytime soon.

EUR/USD Video 26.04.21

What I would anticipate more than anything else would be the usual day-to-day chop of the Euro, but in the short term I think that we may be looking at consolidation between 1.20 and 1.21. More than anything else, this probably comes down to what is going on with the US dollar, because quite frankly the ECB gave us nothing new to deal with after the announcement and press conference on Thursday.

All of that being said, the candlestick does suggest that at least traders are trying to make the breakout, but I think there is a lot of noise to chop through. Quite frankly, if you are going to buy something against the US dollar there are other currencies that will probably move a bit quicker. For example, the Canadian dollar is much more attractive than the Euro itself. If we turn around a break down below the 50 day EMA, then I think this market will start selling off quite drastically.

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