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EUR/USD Price Forecast – Euro Looking to Stabilize

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·2 min read
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The Euro has gone back and forth during the course of the trading session on Thursday as we are trying to recover from the massive selloff on Wednesday. Quite frankly, that did not change the overall trend, and was probably needed. Nonetheless, this pair does still have a bit of an upward tilt, and therefore I think we will continue to see buyers on these dips. Furthermore, the US dollar is struggling based upon the fact that the Federal Reserve is nowhere near tightening monetary policy.

EUR/USD Video 14.05.21

The knee-jerk reaction during the trading session on Wednesday was more than likely due to the hotter than anticipated CPI figures, but the Federal Reserve is not going to be doing anything to tighten the situation, and therefore the US dollar buying was probably a bit overdone. In fact, we are already starting to see a little bit of a reversal, so it does make a certain amount of sense that the market turns around and goes running towards the highs again.

Beyond that, the market also has the 1.20 level underneath that should offer significant support, as it was significant resistance previously and has already seen buyers come back into it, as well as the 50 day EMA. With that confluence of events, it does make a certain amount of sense that it should hold the entire trend up going forward, and I do think that we will try to get to the 1.23 level above which is massive resistance and my longer-term target. That does not mean that we get there anytime soon, but at this point I have no interest in shorting.

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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