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EUR/USD Price Forecast – Euro Pulls Back on Wednesday Waiting for the Fed

By:
Christopher Lewis
Published: Jul 28, 2021, 14:01 UTC

The Euro initially tried to rally during the trading session on Wednesday but then gave back the gains as we continue to see people wait for the Federal Reserve statement.

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Later in the day, the Federal Reserve will be releasing a statement and therefore a lot of traders will be trying to position ahead of it. As things stand right now, it looks as if the Euro is trying to figure out what it wants to do longer term, and my suggestion is that we will probably eventually go looking towards the 1.16 level underneath. It is also worth noting that we are starting to get the “death cross”, as the 50 day EMA is crossing below the 200 day EMA.

EUR/USD Video 29.07.21

Obviously, traders are going to be parsing very closely whether or not the Federal Reserve is going to be tapering or not. At this point, we should also be getting a lot of noise due to that announcement, and keep in mind that the Euro is considered to be the “anti-dollar”, so therefore this might be one of the noisier pairs late in the day. Nonetheless, I think that the 1.1850 level should offer resistance, and of course that 200 day EMA above there. In other words, I think unless there is some type of major regime change, I anticipate that any rally at this point in time will probably continue to be sold into.

If we break down below the lows, then it is likely that we go looking towards 1.16 level rather quickly, as it does make quite a bit of sense that we would see further follow-through in what has already been a relatively long-term trend. Regardless, I do not have any interest in buying this pair anytime soon.

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.

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