EUR/USD Price Forecast – Euro Continues to Hang Onto Support

The Euro did very little during the trading session on Monday, as the Americans were away celebrating the extended Independence Day weekend. That being said, we are sitting on top of the 1.1850 level, an area that should be significant going forward, if we can break down below there and hang on to the losses below that level, then the Euro is very likely to continue going much lower. At that point, I would anticipate a move to the 1.17 handle, and possibly even the 1.16 level.

EUR/USD Video 06.07.21

On the other hand, we could get a little bit of a bounce, but that bounce will have to deal with the 200 day EMA which is just above the 1.19 handle. Above there, it would be difficult to imagine that we could simply continue to go much higher, but if we do, the 1.20 level is the “ceiling in the market”, so it is not really until we get above there that the Euro will have proved itself to show signs of strength. The 50 day EMA is also right in that area as well, so it all comes down to a lot of technical confluence.

What I like about a breakdown is that it not only gets below the support level, but also breaking down below the hammer would of course also show a new break down of even more supportive action, so at that point time it would more or less end up being a “trapdoor opening” to allow the market to fall rather drastically. At this point, the rally is less than impressive to say the least.

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