EUR/USD Price Forecast – Euro Continues to Struggle With 1.18

The Euro has initially tried to rally during the trading session on Monday but gave back the gains to form a bit of a less than enthusiastic looking candlestick. That being said, there are lot of headwinds out there when it comes to the overall attitude of the economic situation around the world. The US dollar is still in an uptrend against the Euro, despite the fact that we had seen such a massive turnaround. At this point in time, I think that the 50 day EMA above could offer a significant amount of resistance, so it not only makes a bit of a target, but it is something to watch out for if we do go higher.

EUR/USD Video 31.08.21

To the downside, we could go looking towards the 1.1750 level underneath, which had been short-term support. With this, I think the market will continue to be very noisy over the next several sessions, so at this point in time I think what we are looking at is a scenario where you are looking at short-term charts and small moves at best. With that in mind, I think you need to be very cautious about position size, but I do favor the downside in the next few days, but I would not look for any significant type of meltdown. Quite frankly, this is a market that I think will continue to chop back and forth and irritate traders more than anything else. The closer we get to the Friday session, the more likely this is going to be a market that will put you to sleep as we wait for those jobs figures.

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