EUR/USD Price Forecast – Euro Pulls Back From 50 Day EMA

The Euro has fallen a bit during the course of the trading session on Friday as the 50 day EMA seems to have offered a little bit of a technical resistance barrier. The 1.17 level of course has had its say as well, so with that being the case I think you need to be cautious at this point, because there is quite a bit of support just below, with the 1.16 level being important more than once. With that being the case, I think that we have an opportunity to perhaps play the bounce, but that is assuming that we even get some type of bounce.

EUR/USD Video 01.11.21

If we were to break down below the 1.16 level, then one would have to assume we are probably going to retest the lows. The Euro suffers at the hands of the European Union and its economy, so although this is an ugly chart, the reality is that it is probably more or less going to be a reflection on the Euro more than anything else. When you look at other currencies around the world, they have fared much better against the greenback than the Euro, so it suggests that the Euro itself is in trouble.

If we can break above the 50 day EMA, then it is likely that we could go looking towards the 1.1750 level, and then eventually the 200 day EMA after that. All things being equal, I believe that the Euro will be a laggard, but if we can take out the highs of the last couple of days, then it is likely that it could be a somewhat explosive move, especially if the US dollar gets hammered against other currencies.

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