EUR/USD Price Forecast – Euro Gets Sold Off
The Euro has initially tried to rally during the trading session on Tuesday but gave back gains to reach down towards the 1.12 level almost immediately. At this point in time, the market looks as if it is going to continue to struggle. This makes quite a bit of sense as Europe is closing down while the United States continues to be one of the better performers out there. As long as that is going to be the case, that is very likely that we continue to see the US dollar favor. Furthermore, with the Austrians and the Germans going towards the lock down case, that certainly will not do anything to help the economy on the continent.
EUR/USD Video 08.12.21
Furthermore, the European Central Bank continues to look very loose with its monetary policy while the Federal Reserve looks likely to continue tapering. If that is going to be the case, then it makes quite a bit of sense we continue to see a break down. In fact, in order to buy this market, I would need to see a daily close above the 50 day EMA to take that move seriously. The 1.15 level above is an area that I think will be difficult to get above as well, so regardless, this is a market that I think you are probably better off looking for rallies to sell once they show signs of exhaustion. The 1.10 level underneath would be a major floor the market, and anything below there could lead to a collapse. That seems to be very unlikely, especially as we are heading towards the end of the year. I think we continue to see a “fade the rallies” type of market, but with somewhat limited downside.
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