EUR/USD Price Forecast – Euro Continues to Meander in Same Range
The EUR/USD pair has gone back and forth during the course of the trading session on Tuesday as we hang around the 1.1550 level. This is an area that has been rather important over the last couple of days, as it looks like we are struggling to get above the floor, but the 1.15 level does seem to be offering a certain amount of support. Breaking down below that will open up the trapdoor for much lower pricing, perhaps reach down to the 1.1250 level over the longer term. That being said, this is probably more about the US dollar than the Euro itself, although there are some things going on in the European Union with paying attention to.
EUR/USD Video 13.10.21
Covid numbers in the European Union are starting to outpace the United States again, and investors continue to pay somewhat close attention to the rate of change. Furthermore, the European Union has a major energy crunch going on right now and has had rolling blackouts with various industries and power plants. As things stand right now, the EU is paying six times what the United States is for most of its natural gas. That in and of itself is going to cause a major drag on the economy.
There are also concerns about the world at large, and that can drive a certain amount of money into the US Treasury market, which of course demands US dollars as well. That being said, the 1.1650 level above is a significant resistance barrier, followed by 1.1750, where the 50 day EMA is currently sitting. It is not until we chew through all of that to the upside that I would consider going long. In the meantime, I will be looking for signs of exhaustion to short.
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