EUR/USD Price Forecast – Euro Plunges Below 1.17

The Euro has fallen rather hard during the course of the trading session on Thursday as we continue to see a lot of volatility. Breaking through the 1.17 level is a very negative sign, and it now opens up the possibility of dropping towards 1.16 level. However, it must be noted that at the time of writing the market has bounced quite a bit and is trying to save itself. It will be interesting to see how this plays out, as the US dollar has flex its muscles quite often as of late. The 1.16 level underneath is massive support, so I do not know if we can break through there very easily, but it certainly looks as if we are going to drop enough to test that area.

EUR/USD Video 20.08.21

To the upside, the 1.1750 level should continue to offer resistance, as it did sell off from that level previously. Ultimately, this is a market that I think continues to see a lot of volatility, but the US dollar has strengthened so much that it makes quite a bit of sense that we look more to the downside than up. Because of this, I think the markets will probably find reasons to drift lower, not the least of which will be the fact that people are jumping into the bond market and drive up the value of the US dollar.

The market has been grinding away to the downside for some time, and I think we should continue to see more of that behavior. Ultimately, fading the rallies should continue to be the way going forward, so therefore that is exactly how I will be looking to trade.

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