EUR/USD Price Forecast – Euro Pulls Back From Same Level

The Euro initially tried to rally during the course of the trading session on Thursday but found the 1.1850 level to be a bit too resistive, as we have seen multiple times. Ultimately, this is a market that I think continues to see the “waterfall effect” as we just simply drift lower. At this point in time, the market is likely to see the lows tested, and if we break down below there, we could go to the 1.17 level underneath. After that, the market could very well go looking towards the 1.16 level, which was a major support level previously.

EUR/USD Video 16.07.21

On the other hand, the market could rally enough to scare people to the upside, but we would need to clear the 1.19 level. Furthermore, we would have to break above the 200 day EMA, and at that point in time could open up the possibility of a move towards the 1.20 handle. Furthermore, the 50 day EMA is starting to reach down towards the 200 day EMA, perhaps causing a potential “death cross” in the future.

All things been equal, it is very likely going to be a “sell the rallies” type of situation going forward, as the US dollar continues to look like it is ready to take off to the upside. If that is going to be the case, then we will almost certainly see it in this marketplace as the Euro would fall apart. In general, I would anticipate that the market remains somewhat downbeat in, but obviously very choppy which is in general the basic attitude of this pair under most circumstances anyway.

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