EUR/USD Price Forecast – Euro Continues to Chop Around

The Euro has initially fallen during the trading session on Monday, to break down below the 1.1850 level. However, we have seen buyers underneath there so it looks like we will probably continue to be very choppy, and therefore I think a bit confusing at times. Nonetheless, it certainly looks as if we continue to see downward pressure based upon the “H pattern”, and of course the 200 day EMA which is roughly 100 points above. With that being the case, I think that the market continues to see a lot of noisy behavior, and more importantly, a lot of negative behavior.

EUR/USD Video 13.07.21

If we did break above the 200 day EMA, then we could possibly see a bigger move to the upside, but quite frankly I think at this point in time the markets are probably going to struggle to see that happen. If we break down below the lows that we made last week, then we could see this market dump rather significantly. At that point, I would be looking at 1.17, followed by the 1.16 level underneath. All things been equal, it is likely that we will continue to be very noisy and sideways, but we most certainly have more of a downward tilt at this point.

In fact, you should also keep an eye on the 10 year yield, because if it continues to fall, that will almost certainly signify that more US dollars are being accumulated, sending this market lower. Beyond that, we also have the CPI numbers coming out on Tuesday that could have an effect on the greenback, which obviously will have an effect on this pair.

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