EUR/USD Price Forecast – Euro Stabilizing Into The Weekend

The Euro has fallen significantly during the course of the previous couple of sessions, but at this point it looks like we are trying to stabilize into the weekend. With that being the case, I think it is very likely that we continue to see this market fall next week, but we may need a short-term bounce between now and then to build up the necessary momentum. By breaking through the 1.15 level, we have cleared another psychological barrier, and that should continue to have an influence on how we trade in general.

EUR/USD Video 15.11.21

Ultimately, this is a market that will continue to go lower based upon the divergence between the two central banks. The ECB seems hesitant to do anything, while the Federal Reserve is already starting the tapering process. The interest rate differential between the United States and Germany should continue to widen, at least in the short term so that should continue to have money looking towards the United States and away from the European Union. Ultimately, I do think that we probably go looking towards 1.1250 level, but this pair can drag its feet at times, so I would not get overly aggressive, just note that it is the general direction of the US dollar that is going to drive this market more than anything else.

Pay close attention to the 10 year yield, because it has had a monstrous effect on where we have gone as of late, something that I just do not see changing anytime soon. With that being said, I am a seller of rallies, and have no interest in buying the Euro until it can break above the 1.16 level.

For a look at all of today’s economic events, check out our economic calendar.