EUR/USD Price Forecast – Euro Continues to Look Weak
The Euro has gone back and forth during the course of the trading session on Thursday as we continue to see a lot of negativity for the Euro, as the European Union continues to struggle to recover from the pandemic. Furthermore, US yields continue to strengthen, and that of course makes the US dollar much more attractive. Nonetheless, when you look at the technical analysis, you can see that we clearly have no major support between here and the 1.16 handle underneath. That is my target, and I look at the 1.1830 level as a major barrier due to the 200 day EMA, and of course the previous support found in that region. With that in mind, I am a seller of the Euro and have no interest in buying, at least not yet.
EUR/USD Video 02.04.21
All things been equal, this is a market that I think will continue to see volatility, but I would keep one eye on the 10 year yield, and of course the coronavirus situation in the EU. At this point, the market is likely to see more negativity than anything else, and as a result I think what we are going to see is that the market remains very choppy and therefore something that you should keep an eye on is your position size. A position that is far too overexposed and large could cause major issues, but this is clearly a market that looks destined to go lower, not higher so therefore I continue to short this pair every time I get an opportunity based upon exhaustion on shorter time frames, and will reassess once we get to the 1.16 level.
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