EUR/USD Price Forecast – Euro Continues to Languish

The narrative today is that the Europeans are likely to shut down the economy, and therefore it will continue to work against the Euro. The reality is that the interest rate differential continues to be a major driver, and therefore it is likely that we have a longer move ahead of us. At any rally at this point in time will more than likely offer a shorting opportunity, especially near the 1.14 level, which we fail to break above previously. If we break down below the 1.1250 level, then I think it is very likely that we could see this market drop down quite significantly.

EUR/USD Video 23.11.21

All things been equal, it is very likely that we will continue to see a lot of noisy behavior, but I still favor the downside overall as I think we are heading towards something kind of ugly when it comes to the US dollar being like a wrecking ball. The Euro is a bit of a punching bag in this scenario, but at this point I think it is not until we break above the 1.15 level, and probably even on a weekly timeframe. Because of this, I believe that this market will continue to offer plenty of opportunities if you are patient enough to wait for “cheap dollars” to appear.

The question now is whether or not we can get the 1.10 rather quickly, or if it is going to take some time? Quite frankly, I hope to see some type of bounce that I can sell, because it is easier to do that than to chase the trade that has fallen this far. It has already hit my longer-term target, so at this point I am waiting to see whether or not I get another opportunity.

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