EUR/USD Price Forecast – Euro Plunges After Lockdown Talk

The Euro has fallen a bit during the course of the trading session on Friday as Austria has announced a mandated vaccination of its citizenry, as well as draconic lockdowns. Germany looks as if it is heading in the same general direction, and this could continue to weigh upon the idea of growth in the European Union. Furthermore, German PPI came out at a whopping 18.4%, the highest reading since 1951. In other words, the European Union seems to be in a lot of trouble. Because of this, it is very likely that we could go looking towards the 1.10 level over the longer term, which was always a threat.

EUR/USD Video 22.11.21

At this point in time, the market is likely to continue to see the occasional bounce, but those bounces will be sold into. Signs of exhaustion will be jumped upon, as the US dollar continues to see a lot of people running towards it. The US Dollar Index has broken out, mainly due to the Euro. As long as there are a lot of concerns out there when it comes to the European Union, it makes quite a bit of sense that we continue to go much lower.

To the upside, the 1.1375 level seems to be offering significant resistance, so I think at this point in time we would probably get a bigger correction, something that looked a very possible just 24 hours ago. At this point though, we will have to see how this candlestick closes but I clearly would not be a buyer of the Euro, rather I would simply let it try to recover before shorting it again.

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