EUR/USD Weekly Price Forecast – Euro Rallies for Third Week in a Row

The Euro broke higher during the course of the trading sessions that make up the previous week, essentially showing a lot of choppy behavior but once the ECB was out of the way we recovered. Now that we are all the way appear at the 1.2060 area, it looks like we are trying to build up enough momentum to take out the 1.21 handle. That is an area that I think has a lot of noise attached to it, extending all the way to the 1.22 handle. Quite frankly, one has to wonder whether or not we can continue this uptrend, or if we are going to pull back again. I see nothing but volatility ahead for the longer-term traders so I would not be overly excited to throw a bunch of money into this market.

EUR/USD Video 26.04.21

To the downside, I see the 50 week EMA as a massive support barrier, and if we were to turn around a collapse below there it would of course lead to a much bigger downtrend. To the upside, I see the 1.23 level as the gateway to much higher pricing as it has been significant resistance previously. If I were a longer-term trader, I would be looking at trading something else, because quite frankly this is a very noisy pair. I would use this pair as a barometer as to how the Euro is behaving and trade it accordingly against other currencies such as the British pound, Japanese yen, Swiss franc, and so on.

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