EUR/USD Price Forecast – Euro Reaching Towards 1.1850

The Euro has initially rallied a bit during the course of the trading session on Wednesday but gave back the gains to roll over again. At this point, it looks as if the next major support level is close to the 1.1850 level, where we bounce from previously. It is worth noting that we are seeing a lot of the same type of price action in multiple currencies against the US dollar, as they bounced ever so slightly before giving up any signs of momentum. The Euro of course is no different, and now I am firmly focused on the 1.1850 level as a result.

EUR/USD Video 01.07.21

If we break down below that level, then my target would be 1.16 underneath, as it was important in the past. That being said, this pair does tend to move a bit slower than many others, so that is also something that needs to be paid close attention to. In other words, this will be a grinder to the downside more likely than not. If you are looking at this chart for a big move, it may take a while, but a little bit of patience may go a long way.

As far as rallies are concerned, I am not impressed until we take out the shooting stars from last week, and perhaps even close above the 1.20 handle on the daily chart. If we do manage to close above that level, then I anticipate that the market is probably going to go looking for another 150 pips above, but right now that does not look very likely. Quite frankly, the US dollar looks like it is about to become a huge wrecking ball against most currencies around the world. Keep in mind that there is a jobs number on Friday that will cause of volatility as well.

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