EUR/USD Price Forecast – Euro Breaks Through Support

The Euro has broken down through the 1.1850 level during the trading session on Friday to show signs of weakness yet again. We have bounced just a little bit during the day, but quite frankly we are in the midst of breaking down below the bottom of a massive “H pattern”, which is a very negative turn of events. If we break down below the candlestick on Friday, then that could open up massive selling in this market to go much lower.

EUR/USD Video 05.07.21

If we do, then it is likely that we go looking towards the 1.17 level, followed by the 1.16 level. The 1.16 level is an area that is massively important on longer-term charts, so I would anticipate that we would see a lot of noise in that area. If we were to somehow break down below there, then the market really starts to fall apart. This would almost certainly be a major “risk off event” reaction and therefore the headlines would be relatively obvious.

To the upside if we were to suddenly take out the shooting stars near the 200 day EMA, the market could start to take off again, especially if we can jump above the 1.20 handle. If that is an area that we get above, then it is likely that we could see this market really start to take out. Nonetheless, the market is about to make some type of decision, but we are clearly just jumping around this larger consolidation area that people are looking at. Choppiness more than anything else will probably be the adjective here.

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