EUR/USD Price Forecast – Euro Continues to Struggle for Directionality

The Euro has rallied initially during the trading session on Wednesday, but as you can see the 1.16 level continues to cause problems. The 1.16 level is essentially a magnet for price, and therefore I think we are trying to build up the necessary inertia for the next move. The next move may take a while to happen, but it should be a rather significant move, due to the fact that we have been chopping around so much and of course we have the Federal Reserve announcement late during the day that could move this market. All things being equal, it will be about whether or not the United States is going to taper its bond purchases.

EUR/USD Video 04.11.21

At this point in time, the market would likely to see noisy behavior, but if we can break above the 1.17 level, then it is possible that we could go much higher, perhaps reaching towards the 200 day EMA above or even the 1.18 handle. On the other hand, if we turn around and break down below the 1.1550 level, then we will threaten the 1.15 handle after that. The market breaking down below that level would be catastrophic for the Euro, and then could send the US dollar spiking much higher. At this juncture, the market simply seems as if it is stuck in this range, so it is more or less a situation where the inertia need to build up enough to put any serious money to work. If you are a short-term range bound trader, this might be a nice market to be involved in, but unless you are willing to trade shorter-term charts, you are probably wasting your time with the Euro.

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