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EUR/USD Price Forecast – Euro Recovering Into the Weekend

By:
Christopher Lewis
Published: Jul 9, 2021, 12:58 UTC

The Euro has recovered a bit during the course of the trading session on Friday, as traders trying to stabilize fears on multiple fronts.

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The Euro initially fell during the trading session on Friday, but then turned around to recover a bit in order to regain the 1.1850 level. That being said, there is a significant amount of resistance just above and it is also obvious that the market has been in a bit of a downtrend over the last couple of weeks. Quite frankly, a lot of this is going to come down to the 10 year note and what the yield currently is. The 1.25% level in the 10 year note needs to be defended, because if yields go below there, it will spark a major “risk off event.” So far, we have seen the market defend that level.

EUR/USD Video 12.07.21

That being said, the 200 day EMA in this pair is sitting at roughly 1.1920, so therefore I think that we are going to continue to see selling pressure just above. On the short-term rally, it looks as if we are probably going to run into a significant amount of selling pressure based upon the action of the last couple weeks, so with that being said I am looking for signs of exhaustion in order to get short again. It is not until we break above the 200 day EMA on a daily close that I consider buying this pair, and quite frankly I would still be a bit worried about the 1.20 handle above, because it has been important more than once, and it does make quite a bit of sense that the market would have to respect that area, at least in so much as there should be a little bit of resistance in that general vicinity.

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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