EUR/USD Price Forecast – Euro Fails at Familiar Level

The Euro has initially rally during the trading session on Friday but found the 1.1850 level to be a bit too much as it had been in the past. With that being the case, it looks like we are going to continue to chop lower overall. You should also keep in mind that the 50 day EMA is offering a significant amount of resistance and could be yet another sign of trouble. With this being the case, one has to wonder whether or not the Euro is going to reach the bottom again?

EUR/USD Video 13.09.21

One thing is for sure, this is not a good look so far and I do believe that we probably see a little bit of trouble. The 200 day EMA recently was tested, but Christine Largarde caused a lot of damage to the Euro during her speech. Whether or not that gets fixed remains to be seen but right now it certainly looks as if that negative influence is still here.

If we were to turn around and break above the top of the shooting star from the candle that pierced the 200 day EMA, then we may go much higher. At this point, I do not trust the way this is behaving, so I think caution is the better part of valor. I believe that the 1.17 level would be an area of interest in this pair, so that might be the target before it is all said and done. Also keep in mind that it is options expiration in the United States stock markets and commodity markets, so that may cause a little bit of chaos as well. One thing is for sure, this is probably going to be very choppy.

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