EUR/USD Forecast: Continues to See the 50-Day EMA Offer Support

• The EUR/USD has gone back and forth during the trading session on Thursday, as we continue to see the 50-Day EMA offer support.
• We are hanging around the 1.07 level, which of course is an area that will attract a certain amount of sense as we had previously seen a lot of resistance there previously.
• The pair does like to move on big figures, and therefore I think we’ve got a situation where people will continue to look at this through the prism of being a magnet for price.

If we break down below the bottom of the last couple of days, then it is possible that we could go down to the 200-Day EMA. That being said, the market continues to see a lot of choppy behavior, and therefore it’s difficult to get overly excited about any particular move. The market doesn’t seem to have any real stability, and therefore I think we are just simply looking for some type of excuse to make a bigger move.

Noise Ahead

 With that being said, I think we need some type of massive move in one direction or the other, and therefore once we get an impulsive candlestick, I will jump on it. The market recently has been more of a day trading endeavor, so short-term positions and perhaps some type of range-bound system probably work out best.

Nonetheless, if we can break down below than 200-Day EMA underneath, the market could very well drop all the way back down to the parity level. The parity level of course is an area where a lot of people will be paying specific attention, and therefore I think you’ve got a situation where it could be a target, it could also be a major support level. The market will continue to be very choppy, but if we do break to the upside, it’s possible, we could go as high as 1.10. That’s an area where we have seen a lot of selling pressure and a recent top with a lot of selling pressure. If it can break above there, then it’s likely that we could go much higher because it would be such a huge move. The market continues to be very noisy, but eventually, I think we will continue to see the market try to build up inertia to make a bigger move.