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EUR/USD Weekly Price Forecast – Euro Has Strong Week Again

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·2-min read
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The Euro initially pulled back towards the 1.20 handle during the course of the week but then turned around to reach towards the 1.2150 handle. Ultimately, the market is likely to see a lot of choppy behavior, but I think what we are looking at is a market that is trying to recover every time it pulls back, especially as the 1.20 level will attract so much attention. To the upside, the 1.23 level is a potential target and I do think that when we see the occasional pullback traders will continue to jump in and try to take advantage of value.

EUR/USD Video 10.05.21

The US dollar of course is going to be thought of as a safety currency, and of course with the way the United States has been flooding the financial system with greenbacks, it is likely that we will continue to go to the upside. The Euro is getting a bit of a boost due to the European Union possibly reopening, and as a result I think what we are going to continue to see is more upward momentum, but somewhat limited due to the fact that there is so much in the way of noise above.

If we break down below the 1.20 handle, then it is possible that we go down towards the 1.1830 level, but right now I think a “buy on the dips” type of attitude is probably going to continue to be the best way to trade this market as it is most certainly positive over the last several quarters. The Euro tends to be extraordinarily choppy in general, so do not be surprised at all to see that behavior continue.

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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