EUR/USD Price Forecast – Euro Gets Hammered on Tuesday

The Euro has gotten crushed during the trading session on Tuesday, as the 1.18 level seems to be a bit of a ceiling for the market. Furthermore, there are a lot of concerns when it comes to growth in general, as the retail sales numbers for the day coming out of America were less than anticipated. Beyond that, there is an overall concern that the Delta variant will continue to cause major issues, as the world is seeing an increase in that infection rate, which has people worried about whether or not the economy is going to pick up locally as well as globally.

EUR/USD Video 18.08.21

To the upside, the 1.18 level obviously is significant resistance but to the downside we have a certain amount of support near the 1.17 level underneath. If we can break below there, then the market is likely to go looking towards 1.16 level, which is the beginning of a major support level that extends down to the 1.15 level underneath, which if it gives way in that area, the Euro will get absolutely smoked. I do not necessarily think that happens, but it certainly looks as if we will try to retest the 1.16 level underneath.

As far as buying is concerned, we need to at the very least clear the 1.18 level, but quite frankly I would be much more interested in buying above the 1.1850 level. We recently had the so-called “death cross”, so a lot of longer-term traders are probably looking to start shorting again as well. With this, I think there will continue to be a lot of noise out there threatening to push this market much lower.

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