EUR/USD Price Forecast – Euro Gets Reprieve

The Euro has initially dipped a little bit during the trading session on Thursday to reach below the 1.16 level. On the other hand, we have turned around and rally 50 pips rather quickly, so it does suggest that perhaps the Euro is in the midst of trying to recover. The question now is whether or not we can break out above the 50 day EMA and the recent resistance that has been such a big portion of this market. With that being said, I think the market continues to see plenty of selling above but if we can clear that 50 day EMA, then it is likely we go looking towards 1.1750 level.

EUR/USD Video 29.10.21

The US dollar is getting hammered against most currencies, so that is also going to help the Euro by design. That being said, the market will continue to see bearish pressure just above, so whether or not this can last would be a completely different question. That being said, you could also make an argument that we are trying to form a bit of a bearish flag, so there is a lot of questions when it comes to this pair. At this point, I like the idea of using this market as more last an indicator of US dollar strength or weakness. It is a bit of a difficult market to trade at times, because quite frankly it does absolutely nothing most of the time. If we break out above the 50 day EMA, I will probably add to my US dollar shorts against other currencies.

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