EUR/USD Price Forecast – Euro Choppy to Kickoff Week

The Euro went back and forth during the course of the trading session on Monday, as traders are still trying to figure out what to do about the US dollar. After all, one of the biggest drivers at this point in time is the greenback itself and what is going on with inflation. That being said, the market is very likely to see more volatility, but I do believe that we will continue to see more or less a “buy on the dips” mentality from a longer-term standpoint.

EUR/USD Video 08.06.21

Keep in mind that the 50 day EMA underneath has been somewhat supportive in the past, so at this point time I would have to assume that there is a little bit of dynamic support just waiting to happen in that region. If we were to break down below there, then it is possible we could make a move towards the 1.20 handle, where I think there is even more structural support, as well as psychological.

To the upside, I see the 1.23 level as being a major barrier that is going to be difficult to overcome, so do not be surprised at all if it take several attempts to get above there, but ultimately it is very possible that the Euro goes looking towards 1.25 level later this year, as the massive amount of spending the United States has been weighing against the greenback itself. Bond yields continue to favor the US in the short term, but they are starting to move back towards the EU as far as positive sentiment is concerned.

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