EUR/USD Price Forecast – Euro Goes Back and Forth in Hesitation

The Euro has gone back and forth during the course of the trading session on Thursday as we are hanging around the 1.17 level, which of course is a large, round, psychologically important figure but it is also an area where we have bounced from previously. Nonetheless, the market is likely to continue to see downward pressure due to the fact that we have sold off so drastically, and of course we have the interest rates in the United States pick it up. That being said, the rising interface makes the US dollar more attractive, especially if the Federal Reserve does look more likely than not to have to taper by the end of the year as some traders are starting to think.

EUR/USD Video 12.08.21

On the other hand, a bit of a bounce could make a bit of sense due to the fact that the market has fallen so hard, but I think we would be a seller on signs of exhaustion after a bit of a rally, at least until we can break significantly above the 50 day EMA, which is light years away from where we are right now. I think it is much more likely that we will continue to see troubles, and therefore the Euro will continue to see a bit of softness. I think that if we break down below the 1.16 level will almost certainly go looking towards the 1.15 handle, which will cause even more support. While I am negative on this pair, I also recognize that it is a market that will probably continue to see noisy behavior.

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