EUR/USD Price Forecast – Euro Looking to Form Support of Base

The Euro has fallen again during the trading session on Wednesday but still finds buyers at the very low end of the range, as the market may be getting a little oversold. Nonetheless, it is very likely that this pair continues to see downward pressure, with the 1.17 level being a very likely initial support level, and then after that the market could go looking towards the 1.16 level which I see as an even more significant support level on the longer-term chart. Ultimately, this is a market that I think will continue to see a lot of choppy volatility, but a bounce from here could be a nice selling opportunity.

EUR/USD Video 22.07.21

To the upside, the 1.1850 level should be a significant resistance barrier, as it is a previous support level, and therefore I think there should be a significant amount of “market memory” in that area. All things been equal, this is a market that continues to go lower over the longer term, but if we were to turn around and break above the 1.1850 level, then the market would have to deal with the 200 day EMA above.

When you look at this chart, it is obvious that we have been very bearish for a while, but you cannot go in one direction forever. Because of this, the market is likely to see a lot of choppy behavior, but quite frankly I am looking for exhaustion above to take advantage of as the move much lower has of course been very strong. If we get some type of “risk off” move coming, then it is likely that we will eventually find that 1.16 level.

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