EUR/USD Price Forecast – Euro Continues to Break Apart

The Euro has fallen yet again during the trading session on Tuesday as we have broken through all semblance of support. At this point, it is very likely that the Euro is going to go looking towards the 1.16 level underneath, which is the next major support area. In fact, I believe that market will continue to see support extending all the way down to the 1.15 level as it is more or less a “zone of support” that we are looking at. If we were to break down below the 1.15 level, that would be horrific for the Euro and could lead to another 300 points lower.

EUR/USD Video 31.03.21

If we do rally at this point, I believe that the 200 day EMA is going to be resistance, especially around the 1.1830 level as it was previous support. All things being equal, I think that this is a market that continues to see a lot of negativity due to the fact that yields in America are rising and therefore by extension it makes the US dollar much more attractive.

At this point in time, the US dollar is breaking out against almost everything, so the Euro probably is not going to be any different. Add to the fact that the Europeans cannot seem to vaccinate their population due to bureaucratic red tape, and it is a bit of a microcosm for how the EU works. Because of this, the Euro it deserves to be punished and there are other reasons such as lockdowns coming across the wire that tell me the Euro and by extension the EU will continue to underperform the United States and some of its other G-10 peers.

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