EUR/USD Price Forecast – Euro Reaches Towards Major Support

The Euro fell a bit during the course of the early hours on Monday but found enough support underneath to make a vague attempt at recovery. At this point in time, it is more likely than not going to continue to see selling pressure above, so it is probably only a matter of time before we see sellers again. After the massive crash on Friday, it should not be a huge surprise to see that there is a little bit of a bounce back. Nonetheless, that massive candlestick from the Friday session certainly suggests that we have further to go to the downside, so I think it is only a matter of time before we do break down below the lows of the day and continue towards the 1.17 level, possibly even down to the 1.16 level.

EUR/USD Video 10.08.21

Pay close attention to the 10 year yield, because if it continues to spike a bit, which will almost certainly drive the value of the US dollar higher. Ultimately, the market would need to break above the 1.1850 level to even remotely suggests that we are going to turn things around. We recently had the so-called “death cross” and a lot of people will be paying close attention to it because of this. Furthermore, the US dollar has seen strength in general, as there are lot of traders out there believing that tapering from the Federal Reserve is going to come much sooner than later, and therefore we will probably continue to see greenbacks continue to attract a lot of demand, as we go into the third quarter of the year.

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