EUR/USD Price Forecast – Euro Lingers Below 1.16

The Euro rallied a bit during the course of the trading session on Friday, as the jobs report in the United States was very dismal. That being said, we are still relatively low, and the 1.16 level will still offer a certain amount of resistance. Because of this I believe that the market will continue to be a “fade the rallies” type of situation, because although the Federal Reserve may be on hold for another month, the reality is that the balance sheet in the European Union continues to outpace the balance sheet at the Federal Reserve. In other words, any rally at this point in time will probably find value hunters in the greenback.

EUR/USD Video 11.10.21

If we were to break above the 1.1650 level, it is likely that the market goes looking towards 1.1750 level, which is near where the 50 day EMA is starting to shift lower. If that is going to be the case, I would be very interested in shorting some type of candlestick that is showing signs of exhaustion. As far as buying is concerned, I would need to see the market close above the 1.1750 level on a daily chart in order to consider buying. The market has obviously seen a shock when it comes to the jobs number, but this is a short-term move more than anything else most of the time. The market will be choppy, but I still think that the issues in the European Union outweigh the issues in the United States over the next several months.

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