EUR/USD Price Forecast – Euro Get Hit Hard

The Euro has broken down a bit during the course of the trading session yet again on Friday, as the jobs number came out and an addition of 943,000 jobs for the previous month in the United States. Because of this, we have seen a run towards the US dollar initially, but at the end of the day we were in a downtrend anyway. Ultimately, this is a market that should continue to grind lower, and if we can break down below the 1.1750 level, but it is likely that the Euro breaks down towards the 1.16 level over the longer term.

EUR/USD Video 09.08.21

The rate differential did widened immediately, with rates in the United States rising, while Germany still offers negative return. As long as that is going to be the case, it is very likely that we will continue to see the US dollar outperform. Ultimately, the market has a lot of resistance just above at the 50 day EMA, and therefore I think it is going to take a lot to get above there. The 1.20 level of course is an area that I would pay attention to as well, so I think selling the rallies continues to be the best way going forward in this pair.

There is a massive amount of support between the 1.16 level and the 1.15 level, so whether or not we can break down below there is a completely different question, but I think it looks like we are most certainly going to at least go down there to try to test that region. Fading short-term rallies will more than likely continue to work.

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