EUR/USD: Long-Term Outlook

Published 05/24/2021, 08:50 AM
Updated 07/09/2023, 06:32 AM
EUR/USD
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The Euro to US Dollar (EUR/USD) exchange rate is one of the world’s most traded currency pairings.

The struggle for the 1.2200 level

EUR/USD is moving still in a correction from the January high. From the low at the end of March, the price could recover but was first rejected from resistance at around the 2018 March low.

After a pullback and some struggling around the September 2020 high, the short-term resistance line was overcome with a strong daily candle. After a retest of the line as support, the price could advance at around the 1,2200 levels.

EUR/USD Daily Chart

Daily chart recovering above 1.2100

Resistance Levels: 1.2243 | 1.2349 | 1.2555
Support Levels: 1,2154 | 1.2011 | 1.1952

As long as the quotes are above the SMA20, further rising prices remain likely. The course in the price range of the previous day’s candles indicates a gathering of strength. A pullback to the SMA20 would also continue to be expected in the current situation.

With continued momentum, the achievement of a new high for the year would also be possible. This would confirm the continuation of the overriding upward trend. On the other hand, a break below the nearby SMA could bring targets around 1.1750 back into focus.

Weekly chart meets resistance

As a result of a progressive correction from the 2021 high, the EUR/USD fell to a local low at 1.1704. In the last few weeks, the price recovered up above the mark of the September’20 high, challenging 1.2200 levels.

EUR/USD Weekly Chart

EUR/USD forecast : Short-term uptrend on weekly chart climbs above 1,2150

Resistance: 1.2243 | 1.2349 | 1.2555
Support: 1.2011 | 1.1876 | 1.1704

On the weekly chart the focus is now on the price mark at around 1.2243, which represents the last local high. As long as the support at around 1.2000 lasts, expectations remain positive. A drop below March low at 1.1704 could turn the neutral to positive outlook into negative.

Monthly chart remains friendly in May

Euro-Dollar forex pair shows a weak candlestick in March dropping below 1.1800 price levels. April was able to recover the losses. The month of May started with new strength reaching towards 1,2200 price levels.

EUR/USD Monthly Chart

EUR/USD prediction : Recovering above 1,2100

Resistance Levels: 1.2349 | 1.2555
Support: Levels: 1.1876 | 1.1569

The monthly chart of EUR/USD shows new strength. With a return above the April high at 1.2150 the outlook turns into positive. A drop below the 2019 high at 1.1569 would flip the chart picture to negative.

Quarterly Chart shows upside potential

Euro-Dollar forex pair is moving in the range of the previous candlestick at prices around 1.2180.

EUR/USD Quarterly Chart

Euro-Dollar Outlook: Possible upside potential

Resistance Levels: 1.2555
Support Levels: 1.1876 | 1.1569

The quarterly chart of EUR/USD looks positive after breaking above the long term resistance line. A correction within the price range of the previous candle is underway, which may lead to sideways action. A drop below the 2019 high at 1.1569 could turn the neutral chart picture to negative.

Yearly chart (Historical chart)

If we look at the yearly chart of the EUR/USD currency pair, we see a long-term downtrend that originated at the 2008 high at 1.6038. This could be terminated, because in the last six years EUR/USD is moving sideways in a big trading range. The long term uptrend line is mayor support which was successfully tested with the 2020 low.

EUR/USD Yearly Chart

EUR/USD historical chart: Next price target could be 2018 high

Resistance Levels: 1.2555
Support Levels: 1.1876 | 1.1570

The yearly chart of EUR/USD looks neutral to slightly positive with strong support at 1.1570 (2019 high). We expect to see sideways action below the 2018 high at 1.2555.

About EUR/USD

The Currency Pair EUR/USD is the shortened term for the euro against U.S. dollar pair, or cross for the currencies of the European Union (EU) and the United States (USD). … For example, if the pair is trading at 1.10, it means it takes 1.1 U.S. dollars to buy 1 euro.

Common European currency was introduced in 1999. Euro currency in cash entered into circulation 3 years later – in 2002. Before that, the non-cash Euro and German marks, French francs, and other European currencies in cash were in circulation simultaneously.

When introducing Euro in January, 1999, the European Central Bank fixed its exchange rate against the US Dollar as 1.1743 dollars for 1 Euro.

*This price prediction is based on the data collected from various sources. This should not be considered as an investing parameter and user should do their own research before investing.

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