EUR/USD Price Forecast – Euro Continues to Look Very Soft

The Euro has rallied slightly to kick off the trading session on Wednesday but gave back the gains to show signs of weakness again. All things being equal, I think that the market is going to go looking towards the support level at the 1.16 level, which is a major support level. Below there, then we have significant support reaching down to the 1.15 handle and breaking below that would send this market another 300 points lower.

EUR/USD Video 01.04.21

To the upside, I would not be overly convinced until we break above the 200 day EMA which is sitting at the 1.1830 level, an area that has been supportive recently, so it should now be resistance. If we were to break above there, then it would be a major change in attitude but right now it looks likely that we will continue to see lower movement in general. With that being the case, I think that we will see the bond market in the United States continue to pummel gold overall, and until those yields start to slow down, it is likely that the Euro will continue to suffer at the hands of the greenback, as we have seen several weeks in a row.

Furthermore, the vaccination situation in the European Union is nothing short of embarrassing, and therefore lockdowns will continue to be a fact of life in the EU. As long as that is going to be the case, money is going to go to where it can grow, and right now that is the United States.

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