EUR/USD Price Forecast – Euro Looking Heavy

The Euro initially rallied during the trading session on Friday, but then struggled as we got closer to the Federal Reserve statement coming out of Jackson Hole. With a keen eye on Jerome Powell people will be trying to figure out whether or not tapering is going to begin finally. At this point in time, if the Federal Reserve does suggest that there is an aggressive move towards tapering, it will almost certainly have the US dollar spiking. At that juncture, I would anticipate that we would see the Euro go looking towards the 1.16 level, as it was such a major support level. Ultimately, this is simply a continuation of the overall downtrend that we have been in, so none of this should be a major surprise.

EUR/USD Video 30.08.21

To the upside, if we can break above the 1.18 level, then it is likely that we go looking towards the 50 day EMA, and then possibly even the 1.1850 level. That is an area that I think will continue to be very important, so if we were to turn around a break above there it is likely that the Euro will spike quite drastically against the US dollar. Ultimately, I think this is a market that will see a lot of pressure in one direction or the other, but right now it certainly looks as if we are ready to continue some of the same noise that we have been dealing with. If that is going to be the case, I think the 1.16 level is going to be a major area of contention. If we break down below there, then it is possible that we could drop another 400 points.

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