EUR/USD Weekly Price Forecast – Euro Continues to Show Indecision
The Euro has gone back and forth during the course of the trading session to form a neutral candlestick, as we continue to see a lot of hesitation near the 1.22 handle. This is an area that of course is important based upon the last three weeks, as we head into the summertime. Summertime trading typically is a little bit sluggish, so it should not be a huge surprise that we are just basically hanging about. That being said, this is a market that I do think it is going to try a bigger move sooner rather than later.
EUR/USD Video 07.05.21
To the downside, I see the 1.20 level as significant support and therefore I think that any move towards that area will probably be picked up by the bullish in an attempt to find value. A breakdown below that level could open up another couple of hundred pips, but quite frankly the question that is on everybody’s mind is whether or not the Federal Reserve is going to have to taper its quantitative easing a bit going forward.
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There does seem to be a lot of noise back and forth about that, which shows up in the charts as these neutral candlestick. As things stand right now, I still think there is probably more likelihood of this market breaking higher than lower, but you must keep your eyes and ears open for the next Federal Reserve statement and whether or not they mentioned tapering. If they even remotely suggest that they are thinking about it, that will send this pair lower.
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