EUR/USD Price Forecast – Euro Running Into Sellers

The Euro has gone back and forth during the course of the trading session on Wednesday, as we are dancing around the 1.22 handle. The neutral candlestick it formed suggests that we are perhaps having to digest some of the major gains that we had over the last couple of candlesticks. Nonetheless, it still looks as if we are going to go looking towards the 1.23 handle, which is where we had seen a lot of resistance previously. At this point, I believe that is the target, and therefore short-term pullbacks are going to be value propositions of people will be taking advantage of.

EUR/USD Video 20.05.21

If we do break above the 1.23 handle, then the market is likely to go looking towards the 1.25 level. The 1.25 level is a large, round, psychologically significant figure that a lot of people will be paying close attention to and I would anticipate that there should be a significant reaction in the market.

That being said, if we were to break down than the 50 day EMA should be supportive and most certainly the 1.20 handle will be. The 1.20 handle will be the bottom of the “uptrend” that we have formed as of late, and now the question is whether or not we are forming a double top or are we trying to break out? I do believe that later down the road we will break above the 1.23 handle, but this pair does tend to be very choppy and noisy, so therefore I do not think it is going to be a very easy thing to accomplish.

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