EUR/USD Price Forecast – Euro Pulls Back Again

The Euro fell during the trading session on Thursday as we continue to chop around in the same range yet again. All things being equal, the Euro is trading roughly between the 1.1830 level and the 1.20 level. With this being the case, I think that the market is trying to figure out where the next big move is, and quite frankly we just do not have the momentum quite yet. We are watching the market react quite violently to yields in America, which of course takes strength out of the Euro and places it into the greenback.

EUR/USD Video 19.03.21

If we were to make a sudden move in one direction or the other, it could lead to the next big trade. If we break above the 1.20 level, then I think the Euro goes looking towards 1.22 handle. On the other hand, if we break down below the 200 day EMA at the 1.1830 level, the market is likely to go down to the 1.16 handle, which is the next major support level underneath there. This would almost certainly have something to do with yields in America going crazy, which at this point is a real threat.

Ultimately, this is a market that I think continues to be very noisy and that is something that is going to make trading difficult, so by all means you should keep your position size relatively small. This chart is going to be almost a completely negative correlation to the 10 year yields, so keep an eye on that market to get an idea where this one will go going forward.

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