EUR/USD Price Forecast – Euro Continues to Drift Lower

The Euro continues to suffer a bit at the hands of the 10 year yield in America which continues to rise. As long as that is going to be the case, one would have to think that we are probably more likely to see selling pressure than a sudden surge of buying. After all, we have already wiped out the gains after the Jerome Powell press conference, meaning that we are more than likely going to go looking towards the 200 day EMA given enough time. If the yields in America continue to rise, that will almost certainly be a given.

EUR/USD Video 22.03.21

If we break down below the 200 day EMA, it sets up the possibility of a move towards the 1.16 level, which is a major support region. Because of this, I think it is only a matter of time before we see buyers come back in in that region simply because of value.

On the other hand, if we do turn around and rally again, it is not until we break above the 1.20 area that I would be confident that we can turn around and continue going higher. Quite frankly, this choppy volatility makes a lot of sense when you pay attention to the bond yields in the United States as well is the situation in the European Union, with the lockdowns and most recently with France locking itself back down. I think at this point the Euro is probably in more trouble than most people realize, and we may have seen a bottom in the US dollar. That remains to be seen but I am starting to become convinced of this.

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