EUR/USD Weekly Price Forecast – Euro Gives Up Early Gains for The Week

The Euro has been rather noisy in general during the course of the week, reaching towards the 1.2250 level before giving up gains. Ultimately, this is a market that I think continues to see a lot of noisy behavior but at the end of the day is trying to make a bigger statement about the overall health of the US dollar more than anything else. Looking at the chart, you can see that we have formed a couple of long wicks to the upside and that should not be a huge surprise considering how important this area is just above.

EUR/USD Video 31.05.21

Nonetheless, I think that the 1.20 level underneath will continue to be worth paying close attention to, as it is a large, round, psychologically significant figure, and an area where we have already seen reaction a couple of times in the past. As Europe continues to open up, we could see more upward pressure, but this is a pair that does not tend to move easily, so do not be surprised at all if it takes a minute to break out above the 1.23 level and go looking towards 1.25 level which is my longer-term target for the year, perhaps later this summer or even as late as this fall if we continue to see the sluggish behavior.

With all of that being said, I think that this will continue to be choppy and noisy, and that is probably the main take away from all of it. I like buying dips, but probably need to do it on short-term charts such as the four hour timeframe in order to take advantage of value.

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