EUR/USD Price Forecast – Euro Gives Up Early Gains

The Euro initially rallied a bit during the course of the trading session on Tuesday but gave back significant gains to break down below the 1.1850 level. By doing so, the market looks as if it is going to continue to see downward pressure. If we break down below the lows of the hammer from Friday, it could certainly open up a bit of a “trapdoor effect” to send the market much lower. At this point, the market would be very likely to see a move towards the 1.17 level, and then possibly as low as the 1.16 level. After all, we had just recently formed a massive “H pattern”, which of course is very negative.

EUR/USD Video 07.07.21

If we were to turn around and take out the highs of the trading session from Tuesday, then the market could go looking towards the 200 day EMA, but it clearly does not look as if we have a lot of momentum jumping into this market. All things being equal, this is a market that I think is probably going to continue to struggle in general, as the US dollar looks to be trying to pick up momentum again.

There is some type of “risk off” type of event, then it is likely that we have even more momentum coming into this market to reach towards lower levels. I think the one thing you can probably count on is volatility at this point in time, so therefore I think you have to look at this as a potential dangers pair at times, but if we can get a breakout or breakdown, then you can add to your position size.

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