EUR/USD Price Forecast – Euro Continues to Pressure Upside

The Euro initially tried to pull back a bit during the trading session on Monday but has turned around completely to show signs of life. Because of this, I think the market will continue to hover around the 1.16 level, and until we can make a longer-term decision. I still do not like the Euro in general though, because quite frankly it is underperforming other currencies against the greenback. In that sense, it is more or less a relative strength type of play and has to be looked at through that prism.

EUR/USD Video 19.10.21

After all, the European Union has a lot of issues that other places do not seem to have at the moment, and the economic numbers continue to be somewhat weak. However, going forward is very likely that the European Union will have to play a bit of “catch-up” to the other developed economies, meaning that from a longer-term standpoint we very well could be in the midst of trying to turn things around. From the short term, I believe that if we break above the 1.1650 level, then we could make a move towards the 1.1750 level, or at least the 50 day EMA between here and there.

To the downside, if we take out the lows from the session on Monday, it could open up a move to retest the lows again, but the impulsive move that we had seen from the bottom of this market last week does suggest that we are at least trying to turn things around. Whether or not that actually happens remains to be seen, as it is so noisy at the moment.

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