EUR/USD Price Forecast – Euro Gets Hammered After Retail Sales
The Euro has broken down significantly during the course of the trading session on Thursday to slice through the 1.18 level without any hesitation. This is a market that has been looking for some type of direction over the last week or so, and it is obvious that we have finally gotten it. If we can break down below the 1.1750 level, the area we are currently hovering around as I write this, so I would have to say that it looks more likely than not we will get a little bit of follow-through.
EUR/USD Video 17.09.21
That being said, if we turn around and rally from here then I will be looking for an opportunity to fade the first signs of resistance that appear. The 1.18 level should now offer a little bit of resistance, just as the 50 day EMA world that is sitting above the couple of candlesticks. With that in mind, I think that this is a market that is trying to find a move lower. Keep in mind that this is all about the US dollar right now, as the Euro has very little in the way of news in the short term. That being said, the money goes to where it is treated best, so therefore with interest rates rising in America, it makes quite a bit of sense that the greenback might be more attractive than the Euro itself.
As far as buying is concerned, I would not be interested in this market until we can break above the 1.1850 level, or some type of support of candle at a lower level. Right now, I do not think it is something that I would be a buyer of until we get at least a supportive daily close. In the short term, rallies that show signs of exhaustion will get faded.
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