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EUR/USD Weekly Price Forecast – Euro Testing 50 Week EMA

By:
Christopher Lewis
Published: Apr 2, 2021, 14:44 UTC

The Euro continues to fall during the week but did get a little bit of a reprieve on Thursday as traders closed out positions ahead of the Easter weekend.

EUR/USD

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The Euro has fallen a bit during the course of the week, reaching down towards the 1.17 level before bouncing on Thursday as traders closed out their positions heading into the Easter weekend. That being said, the market is very likely to continue to see this pair reach down towards the 1.16 level, an area that of course is a major support level that previously had been so important in the market. I think it makes sense that we go down there to test it, but if we break down below the 1.16 level, it could really start to open up a move much higher.

EUR/USD Video 05.04.21

Looking at this chart, the 200 week EMA is sitting just above the 1.15 handle, so that would be the next major moving average to swing for, but quite frankly I am not thinking that far ahead. Rallies at this point would be selling opportunities from what I can see, as the European Union continues to see major problems with the coronavirus vaccination rollout. Furthermore, we also see rants and Germany is locking themselves back down, so quite frankly I think the European Union is going to continue to be a basket case. With that being the case and of course the Americans adding 900,000+ jobs last month, there is a clear divergence between the two economies. Ultimately, the market is willing to look past all of the spending in the United States and focus more on the fact that rates are rising. As the rates continue to separate between the two economies, that continues to put bearish pressure on the market here.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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