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EUR/USD Price Forecast – Euro Breaks Barrier

By:
Christopher Lewis
Published: Oct 19, 2021, 13:59 GMT+00:00

The Euro has broken above the 1.1650 resistance barrier, an area that has been important over the last several weeks. At this point, the market is likely to go higher and looking towards the next resistance barrier.

EUR/USD Price Forecast – Euro Breaks Barrier

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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.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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