EUR/USD Price Forecast – Euro Gets Sold Off to Kick Off Week

The Euro fell during the trading session on Monday but has made a little bit of a recovery below the 1.1775 handle. As result, it looks as if the market is trying to pick its feet back out but let us not mince words here, the reality is that the Euro is vastly underperforming most other currencies against the US dollar. If that is going to be the case, then this could be a bit of a “canary in the coal mine” type of effect, as the trading public will be paying close attention to how the US dollar performs overall.

EUR/USD Video 14.09.21

If we continue to see a lot of noise in this market, then I suspect what we will eventually have to come to terms with is whether or not the markets are going to go “risk on”, or if they start to go “risk off” yet again. There seems to be a lot of volatility just waiting to happen, and as a result I think that you are better served to take a few minutes and pay attention what happens over here, unless of course you have access to live feeds for the US Dollar Index. One works as a proxy for the other, so keep that in mind.

To the upside, I see the 1.1850 level as massive resistance, just as I see the 1.17 level underneath as significant support. Ultimately, this is a market that allows for a lot of noise and chop, but it also gives you a bit of a “heads up” as to where the US dollar may be going overall against multiple other pairs.

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