EUR/USD Weekly Price Forecast – Euro Gives Up Early Gains for the Week
The Euro has rallied significantly during the course of the week to reach towards the 1.22 handle, and even higher than that. However, we have pulled back significantly so looking at this situation, it more than likely would be more of a “buy on the dip” type of scenario. The US dollar is on its back foot as it is approaching a three year low in the US Dollar Index, and if inflation starts to pick up in America the way people are talking, it is possible that we may continue to see the Euro exploded to the upside over the longer term.
EUR/USD Video 24.05.21
That being said, the Euro does not move that quick, so I think more than likely what we are going to see is a significant amount of choppy behavior before we go anywhere for a bigger move. The 1.20 handle underneath should be massive support, and therefore I think it should be thought of as a “floor the market.” If we were to break down below there, then it would be a slice through the 50 week EMA, which is a very negative turn of events. Nonetheless, I do think that overall, I would still favor the upside. That being said, I would have to pay close attention to that break down though, because it could open up something much bigger. That would obviously be a huge “risk off” type of environment. In the short term, I think we are simply going to bounce around in order to build up momentum for the next move from a longer-term standpoint.
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