Advertisement
Advertisement

EUR/USD Price Forecast – Euro Pulls Back After Explosive Move on Friday

By:
Christopher Lewis
Published: Nov 29, 2021, 14:52 UTC

The Euro has pulled back just a bit during the trading session on Monday, showing signs of weakness, but quite frankly this is a market that got ahead of itself on Friday.

EUR/USD Price Forecast – Euro Pulls Back After Explosive Move on Friday

In this article:

The Euro has pulled back just a bit during the course of the trading session on Monday, as we had seen a bit of overreaction in what would have been very thin volume on Friday. That being said, the Euro is still in a strong downtrend, so I am not looking to buy this pair, but would love to see a little bit of a bounce in order to take advantage of in order to pick up “cheap dollars.”

EUR/USD Video 30.11.21

Looking at this chart, the Friday candlestick is very important, but you should also keep in mind that it is not a normal day as it was the day after Thanksgiving. Whether or not we would have seen such a huge move is a completely different question, and I think one that will be answered over the next couple of days. The 1.1350 level above could be significant resistance, so that is essentially what I am watching for. Whether or not we get it might be a completely different question, but I think that what you are looking for is some type of exhaustion to take advantage of. I have no interest in buying this pair, at least not anytime soon.

Keep in mind that the Euro is a bit of a special situation, as it has been beaten up against the US dollar quite drastically, even more so than many of its contemporaries. Because of this, I would not short the US dollar against the Euro, at least not unless we see the dollar falling apart across the world. I do not see that right now, so I think it is simply a matter of waiting for a selling opportunity.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement