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EUR/USD Price Forecast – Euro Reaches Higher

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The Euro rallied significantly during the course of the trading session on Friday after the jobs number came out in America, quite disappointing. Some pundits had expected as much as 1 million jobs added, but just a bit over 200,000 and ended up being the number. That being said, yields in America dropped drastically, and that of course helps the Euro against the greenback. That being said, I do believe that it is only a matter of time before we were going to break out anyway, so this might just simply be the excuse.

EUR/USD Video 10.05.21

Underneath, I still see the 1.20 level as significant support, so I do not have any interest in trying to get too cute here in trying to short this market because the area above just has a bit of resistance in it. All things being equal, I think we go sideways going forward, because there is no real reason to think that this market is going to be anything other than it typically is, which of course is choppy and sideways with a slight attitude in one direction or the other. That being said, I believe that this market probably goes looking towards the 1.22 handle, and then eventually the 1.23 handle. The 50 day EMA continues to be supportive, so I think you need to pay close attention to that as well. Nonetheless, I think that this remains a short-term “buy on the dips” type of situation, I expect a lot of noise, but I still favor the upside at least in the short term.

As far as longer-term is concerned, there are a lot of wildcards out there that could continue to throw this thing around.

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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