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EUR/USD Price Forecast – Euro Pulls Back From 50 Day EMA

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Christopher Lewis
·1 min read
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The Euro initially tried to rally during the trading session on Wednesday but has pulled back from the 50 day EMA to show a bit of hesitation. This not a huge surprise, due to the fact that the 1.20 has offered a bit of a bounce only to head into the sideways moving average. The 50 day EMA is highly followed by technical traders, so that being the case one needs to pay a certain amount of attention to. Having said that, if we break above the top of the candlestick for the trading session on Wednesday, then we more than likely go looking towards the 1.22 handle.

EUR/USD Video 4.03.21

To the downside, I believe that the support extends all the way down to the 1.19 level, so I do think there is a certain amount of a floor underneath that people will continue to monitor. Because of this, I think that it is not until we break down below the 1.19 level that we need to be overly worried about this pair. Having said that, I think that given enough time we will see people look at the inoculation situation in the United States and the European Union as equally now, and that could in fact actually help the Euro. It may take a bit of time, but I do believe that eventually people will try to continue to push higher. However, if we break down below the 1.19 handle, then we could open up a move down to the 1.17 level, perhaps driven by higher US yields.

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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