EUR/USD Price Forecast – Euro Continues Grinding Action

The Euro continues to be very noisy, as we are grinding around the 1.1650 level. The market of course continues to see a lot of resistance above, so it does suggest that we have a big fight over this region. The 50 day EMA is sloping lower and could offer a significant amount of resistance. That being said, the market is likely to continue seeing noisy behavior, with the 1.16 level potentially offering a bit of a short-term floor. Breaking down below that level could open up a move to the lows again, and then possibly even the 1.15 level. A breakdown below the 1.15 level would be rather negative, and perhaps open up a move down to the 1.1250 level.

EUR/USD Video 21.10.21

To the upside, if we were to turn around a break above the 1.1750 level, then the market could possibly go looking towards the 1.1850 level. Nonetheless, I think this is more about the US dollar during the last couple of days that it has been the Euro, and as the US dollar has sold off against most things, that will translate into what happens here. The market will continue to be a lot of noisy behavior, so quite frankly if the US dollar starts to selloff, I probably would go looking towards other currency pairs in order to short the greenback because the Euro continues to see a lot of negativity due to rising coronavirus figures and the fact that bond markets in the European Union still offer negative rates overall, and the ones that do not are still offering much less than the US.

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