EUR/USD Price Forecast – Euro Bounces From Extreme Lows

The Euro has rallied a bit during the course of the trading session on Monday, showing signs of life again. The 1.15 level underneath continues to be a major support level, and at this point in time it appears that the market is going to continue respecting this level. With that being the case, the market is likely to continue seeing this area as crucial, and as long as we can stay above there it is likely that we will see plenty of buyers jumping into the market. All things been equal, this is a market that I think now is looking at the 1.16 level above as significant resistance.

EUR/USD Video 09.11.21

At this point in time, it is likely that some traders are looking at this as a potential “double bottom”, and it is probably worth noting that the other major pairs are starting to show similar behavior, so it will be interesting to see what happens with the US dollar next. At this point in time, the US Dollar Index is pressuring a major resistance barrier, but it looks like it is pulling back. With that in mind, I think we are about to see a bit of US dollar weakness. With this being the case, the most likely place that people will run two will be the European Union, as it is considered to be the “anti-dollar.”

The 50 day EMA sits above and is sloping lower, but that is near the 1.1650 level, so we have a while before we get to that resistance barrier. This does not necessarily mean that you need to worry about at the moment, but it is something to keep in the back of your mind as we approach it.

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