EUR/USD Price Forecast – Euro Has Tough Session

The Euro has fallen significantly during the course of the trading session on Monday to reach down towards the 1.13 level. The market continues to be very choppy and sideways overall, so this should not be a huge surprise, but at the end of the day I think the Euro is probably in significant trouble. While we do see a significant amount of support underneath, it appears that the Federal Reserve actions in the United States will continue to drive this pair more than anything else, so therefore it is worth paying close attention to the 10 year yield, which continues to rise. As long as that is the case, the US dollar will probably outperform the Euro under most circumstances.

EUR/USD Video 11.01.22

To the upside, the 50 day EMA has come into the picture just below the 1.14 handle, and I think a lot of people will be paying attention to that. If we could break above that area, then it is possible that the Euro could go looking as high as 1.16, but it is clear that we just do not have the momentum at this point. If we break down below the 1.1275 handle, it is likely that will drop another 50 pips or so where we could find support. After that, we could be looking at a move towards 1.10 level.

The one thing that you can probably count on in this pair more than anything else is choppy behavior, but if you have ever traded the Euro, you would know to expect that as it is the norm for this market. Quite frankly, it does not move very quickly most of the time.

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