EUR/USD Price Forecast – Euro Waiting for Direction

The Euro has gone back and forth during the course of the trading session on Wednesday as we await to see what happens with the FOMC. Quite frankly, traders out there are looking for some type of direction from Jerome Powell when it comes to what the Federal Reserve will do when it comes to the yield curve control. After all, yields in the bond markets have been all over the place, and it is likely that we will continue to see people pay close attention to what is going on there. After all, higher yields in the United States will drive the value of the US dollar higher.

EUR/USD Video 18.03.21

To the downside, the 1.18 level features the 200 day EMA, and if we break down below it, we would more than likely see the 1.16 level underneath. The move would almost certainly have something to do with yields rising in America, and perhaps Jerome Powell not doing anything about them. On the other hand, the Federal Reserve does step into the marketplace and start purchasing bonds again to drive down yields, we could see the Euro take off to the upside. At that point, it would almost certainly challenge the 1.20, which is a large, round, psychologically significant figure.

At this point, I think that the 200 day EMA is probably the most important indicator but really the biggest influence will be the statement from the FOMC and the questions and answers section, so it is likely that we will be very quiet until we get some answers from the Federal Reserve.

For a look at all of today’s economic events, check out our economic calendar.