EUR/USD Price Forecast – Euro Attempting to Recover
The Euro rallied just a bit during the course of the trading session on Thursday as we have broken above the top of a hammer from the previous session. That being said, the market is very likely to continue seeing overall bullish behavior in the short term, but this to me seems more along the lines of a recovery than anything else. This is a simple bounce in what has been a vicious downtrend, and it is not until we break above the 1.16 level that I would be convinced that anything has changed. At that point, we would have broken structure, something that we are light years away from doing right now.
EUR/USD Video 19.11.21
If we turn around a break down below the bottom of the hammer from the Wednesday session, that opens up a major selling position as it would pierce the crucial 1.1250 level. I do not see that happening very easily, but of course it is something that is possible. All things been equal, I suspect that we may get a day or two of corrective behavior, before we start to see sellers again.
The Euro continues to suffer at the hands of the European Central Bank, which of course is very dovish in general and should continue to be a bit of an anchor around the neck of the Euro itself. The Federal Reserve is looking much more hawkish, as they have started to taper bond purchases, driving rates higher over the longer term. That makes the US dollar much more attractive, and therefore it makes a lot of sense that we are seeing exactly what is going on right here.
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