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EUR/USD Price Forecast – Euro Testing Recent Flip

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Christopher Lewis
·2 min read
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The Euro has initially pulled back during the trading session on Tuesday but then shot towards the 1.1830 level. That of course is an area that has previously been supported, and it should now be resistance. Furthermore, the 200 day EMA is an area where a lot of technical traders will be paying close attention to it. At this point, it will be interesting to see whether or not the market can continue to go higher, because the 50 day EMA is crashing towards the 200 day EMA, so we could get the so-called “death cross”, a technical signal that a lot of sellers will jump on.

EUR/USD Video 07.04.21

A lot of this comes down to 10 year yields in America dropping a little bit during the trading session, as we are now below the 1.7% level. That being said, it is interesting to watch the correlation, because if the yields start to rise again that will probably send this pair much lower as it would bring strength into the greenback. On the other hand, those yields continue to fall, that could lift the Euro towards the 50 day EMA.

All things been equal, this is a market that has been in a downtrend for a while, so even though we are testing the previous support, I do not want to buy it, at least not yet as we have no confirmation anytime soon, and therefore I think you are still going to be looking for signs of exhaustion that you can jump on. However, I will keep you up-to-date here at FX Empire as to whether or not I think that the market “flips” to being positive.

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

This article was originally posted on FX Empire

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