The Euro has initially tried to rally during the trading session on Wednesday but then fell to reach towards the 1.2225 handle. This being the case, it looks like the market is probably going to continue to see a lot of noisy behavior but with this I think you will have to be cautious due to the volatility that we have seen but all in all it looks like the Euro is still going to try to reach towards the major resistance barrier.

EUR/USD Video 27.05.21

That resistance barrier is the 1.23 level above, and that is what we are looking at trying to reach towards. The 1.23 level is an area that we have seen more than once become important. Because of this, a pullback from there probably gets bought into as we try to push to the upside. After that, then we have the ability to go towards the 1.25 level which I think is the longer-term target given enough time. It is going to take a while to get there obviously, but I think that is the target that most analysts out there have by the end of the year, myself included.

This will be especially true due to the fact that the US dollar is getting sold off quite drastically. The US dollar weakness of course has been a major driver, but we also have the European Union trying to open up and starting to show stronger economic indications as well. As the reopening trade continues to favor positivity, I believe that this pair will continue to grind. I have no interest in trying to short this pair anytime soon, at least not until we break down below the 1.20 level.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

  • USD/JPY Price Forecast – US Dollar Continues Consolidation

  • S&P 500 Price Forecast – Stock Markets Continue to Grind Higher

  • Ripple Readies NFT Push, XRP Joins Rally

  • AUD/USD Price Forecast – Australian Dollar Initially Rallies but Gives Up Gains

  • ‘Meme Stocks’ Extend Grip on Wall Street as GME, AMC Take Off

  • E-mini S&P 500 Index (ES) Futures Technical Analysis – Trader Reaction to 4177.50 Set Tone into Close