EUR/USD Price Forecast – Euro Continues to Drift Lower

The Euro has fallen again during the course of the trading session on Thursday, as we continue to drop from the massive selling on Wednesday. At this point in time, the market is likely to see a lot of negative pressure, so I look for short-term rallies to be sold into. The 1.15 level of course has a certain amount of psychology involved in it, but at this point we are clearly below it, so it does make a certain amount of sense that it now serves as a barrier due to “market memory.” That being said, I think that the market will continue to be very noisy, but quite frankly as long as the interest rates in America continue to spike, it is difficult to imagine a scenario where this market rallies much at all. Given enough time, I fully anticipate that we have further to go, perhaps reaching down towards the 1.1250 level over the longer term.

EUR/USD Video 12.11.21

If we were to turn around and recapture the 1.16 level, then I might be convinced to start buying. Until that happens, I am not interested in trying to get too cute with this pair, as it will almost certainly continue to see a lot of downward pressure as the world seems to be “running for the hills.” This was a very volatile market during the previous session, and I just do not see that changing in the near term. Innocent that we formed during the day on Wednesday typically means that there is going to be a move to follow-through, and we are already starting to see that happen.

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