EUR USD Price Forecast – Euro Continues to Look Threatened

The Euro initially tried to rally during the course of the trading session on Wednesday but gave back the gains in order to form a less than impressive candlestick. Quite frankly, the 1.18 level continues to be a major barrier, and if we get down below there it is likely that we could open up the possibility of a move down to the 1.17 level, followed possibly by the 1.15 handle. This does not necessarily mean that it will be easy, or that it will be quick, but it certainly looks as if the “H pattern” is starting to play out again, so therefore it is likely that we could go much lower.

EUR/USD Video 08.07.21

To the upside, the 1.19 area has been significant resistance, especially after the massive selloff we had seen during the trading session on Tuesday. With this being the case, the market is likely to see a lot of selling pressure on short-term rallies, but quite frankly at this point in time it looks as if the momentum for the US dollar is picking up yet again, so I think ultimately this is likely going to be a major down just waiting to happen. There are so many people counting on the US dollar falling, that sooner or later the “trapdoor” will open, and we will go much lower if we do in fact continue pressing the issue.

The bond market has attracted a ton of buyers, and that of course will drive up the value of the US dollar as well. Because of this, it all ties in quite nicely with this overall move that we have seen.

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