EUR/USD Price Forecast – Euro Showing Signs of Weakness Again

The Euro initially tried to rally during the trading session on Monday but gave back the gains as we got close to the 1.1875 handle. As we have pulled back from that level, it looks rather weak, and it is likely that we will continue to see a bit of a rollover as the market is near the top of the overall consolidation area. Quite frankly, I do not see a reason for the Euro to suddenly take off to the upside, because there is no catalyst.

EUR/USD Video 17.11.20

The 50 day EMA underneath would be a target for short sellers, and it could also offer a little bit of support. If we were to break down below there, then the market could go even lower, perhaps down to the 1.16 level after that. Ultimately, I do not like the idea of owning the Euro, simply because there is so much in the way of negativity coming out of the European Union and of course the economy is slowing down in that region.

The European Central Bank is likely to loosen monetary policy in December as well, and as a result traders are trying to get in front of that particular announcement, and at this point in time it should continue to weigh upon the Euro in general. The US dollar could also get a bit of a boost due to liquidity concerns in China, meaning that there would be a major demand for the greenback. Looking at this chart, you could see a continuation of the overall negativity as well, so at this point in time it makes quite a bit of sense that we just simply fail from here.

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