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EUR/USD Price Forecast – Euro Retest 1.16

By:
Christopher Lewis
Updated: Oct 25, 2021, 14:20 UTC

The Euro has initially tried to rally during the trading session on Monday, but then slammed into the 1.16 level.

EUR/USD Price Forecast – Euro Retest 1.16

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The Euro has initially tried to rally during the trading session on Monday, but then gave back the gains to slam into the 1.16 level. The 1.16 level is an area that has been important more than once, so I do think that it is only a matter of time before we continue to see a bit of a pushback. Whether or not we hang here is a completely different question, but if we can break above the 1.1675 handle, then I think it is likely that the Euro could go looking towards 1.1750 level.

EUR/USD Video 26.10.21

If we break down below the bottom of the candlestick for the trading session, then it is very likely that we go looking towards 1.15 handle. Ultimately, this is a market that will continue to be very noisy, but at the very best I think this market represents the US dollar itself. As long as the market can stay in this general vicinity, I think it has a chance of reversing.

However, if we were to turn around a break down below the 1.15 handle, that could be very negative for the Euro itself. At this point in time, it is trying to do everything it can to support itself, but it needs some type of impulsive green candlestick to get long. The bottom did turn things around and form a massive green candlestick, but it was not enough to change the trend. I think we continue to see a lot of choppy behavior, and therefore what I look at is how the US dollar is behaving in this market, so I can trade it and other ones. It becomes a bit of a proxy for the US Dollar Index.

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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