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EUR/USD Price Forecast – Euro Continues to Give Up Gains

By:
Christopher Lewis
Published: Nov 23, 2021, 14:35 GMT+00:00

The Euro has initially tried to rally during the trading session on Tuesday but gave back gains as the market approach the 1.13 level.

EUR/USD Price Forecast – Euro Continues to Give Up Gains

In this article:

The Euro has initially tried to rally during the course of the trading session on Tuesday but has given up the gains near the 1.13 level. All things been equal, this is a market that you should be looking to fade every time we get some type of bounce. It is obvious at this point in time that the Euro will continue to be the punching bag for greenback traders, as the European Union is locking itself down and therefore one would think that the economy should start to slow down even further. With this being the case and the fact that the European Central Bank is obviously going to be dovish at this point, it makes a lot of sense that the dollar continues to attract capital inflow.

EUR/USD Video 24.11.21

The 1.10 level underneath is my target, but it may take some time to get there because we have fallen so hard as of late. With this being the case, I have no scenario in which a willing to be a buyer, at least not at the moment, so I look for opportunities to pick up “cheap dollars”, although one will probably see European equities take off due to the fact that exports are going to be cheap.

Keep in mind that you are playing one economy against the other, so it will keep the Euro from completely collapsing completely, and therefore it is worth noting that you should look for opportunities to short after the bounce. Remember, this pair typically is very grinding more than anything else, and I do not expect that to change anytime soon.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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