EUR/USD Price Forecast – Euro Continues to Climb

The Euro has fallen again during the trading session on Tuesday as the 1.17 level is now in focus. Breaking down below there then opens up the possibility of reaching down to the 1.16 level underneath which was a major turnaround point previously. I believe that is the beginning of a massive support “zone” that extends down to the 1.15 handle. I do not know if we can break down below there, but if we did that would be disastrous for the Euro.

EUR/USD Video 11.08.21

Most of what is happening now relates to the bond market, as the United States rates continue to climb, while the German rates are negative in some of the bond markets. In other words, you get paid more to invest in the United States so therefore it makes quite a bit of sense that the US dollar continues to attract attention. With CPI numbers coming out on Wednesday, that will obviously have its say as to where we go next, and therefore we need to pay close attention to what happens reaction and where the Euro goes by the end of the Wednesday session.

Ultimately, I do believe that rallies will be sold off unless of course the inflationary numbers in the United States come out lower than anticipated, something that I just do not see happening. With this, I think it is only a matter of time before we test that crucial 1.16 level, but I am also the first to admit that the Euro may have been oversold, and therefore we probably need a bounce in order to get involved. If you are looking to buy the US dollar against currencies, you will probably have more room on the charts and other pairs.

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