EUR/USD Price Forecast – Euro Gives Up Early Gains
The Euro rallied a bit during the course of the trading session on Wednesday as we continue to see a lot of volatility in this pair. Most of the rally happened before the CPI numbers coming out the United States though, and as the numbers came out, the Euro gave up some of its gains. Nonetheless, I think we are simply consolidating in this area, and we need to figure out whether or not we are going to continue the downtrend, or if we are going to consolidate in this area.
EUR/USD Video 14.10.21
The market will be paying close attention to the 1.16 level above, and that should reach towards the 1.1650 level. After that, then we have the region just above the 1.17 level that could come into the picture. It is worth noting that the 50 day EMA is in that general vicinity as well, so obviously it will attract a certain amount of attention. All things been equal, I like fading rallies going forward, but I do recognize that if we were to break down below the 1.15 level, the market is likely to go down to the 1.1250 level as it would be a major “flush lower.” At that point, I would anticipate that the market would go lower rather quickly.
That being said, I think that it is going to be a scenario where you will probably have a better opportunity to take advantage of the trend, so if you are patient enough you should get the set up to start shorting. I have no scenario in which a willing to buy this market until we are well above the 1.1750 level, something that does not look that likely at the moment.
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