EUR/USD Price Forecast – Euro Breaks Barrier
The Euro has rallied significantly during the course of the trading session on Tuesday to break above the 1.1650 level, an area that has caused quite a bit of noisy behavior. By breaking above there, the market is likely to go looking towards 1.1750 level above, and the 50 day EMA in general. At this point, the market faces even more downward pressure and as a result I think that although we have broken through this first barrier, the upside is probably somewhat limited. In fact, we are already starting to give back some of those gains as the Euro has a whole host of issues surrounding it.
EUR/USD Video 20.10.21
If we were to break back down below the 1.16 level, then I think we probably go looking towards the lows. On the other hand, if we can break above the 1.1750 level, then I would consider going long of the Euro, because we would still have quite a way to go before things run out of momentum. The US dollar is being sold off in general, so that could possibly be reason enough to make this happen, but we will have to wait and see.
Expect a lot of choppy volatility, but quite frankly if you are looking to sell the US dollar, there are other currencies out there that you can do it with that will probably outperform the Euro. With this, although short term it could be bullish, I still would be a little bit cautious about my position size, because quite frankly the Euro has been rather sick looking for a while.
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