EUR/USD Price Forecast – Euro Struggling at 1.16
The Euro has shown itself to be stabilized at the 1.16 level, and at this point in time I think this is a level that is going to be crucial. It is acting as a “magnet for price”, and therefore it is not a huge surprise to see it hanging about in this general vicinity. The Euro has been slipping overall for several months, but in the last couple of weeks it has made a slight attempt to rally. The US dollar itself has been rather weak, but the Euro is probably the one place where we see the most likelihood of a reversal. After all, the Euro has been pathetically week.
EUR/USD Video 27.10.21
The 1.1675 level above is significant resistance, as we have failed to get above there the last couple of sessions. Ultimately, this is a market that I think will continue to see that as important, especially as the 50 day EMA is reaching towards it. If we can break above there, then it is possible that the market could go looking towards the 1.1750 level, but that does not seem likely at this point. While I am okay with shorting the US dollar in general, it is not necessarily against its currency.
It is because of this that I see the pair more or less as a secondary indicator that you can take advantage of in other markets. For example, if the Euro rallies significantly, then it is possible that you can see an even more impressive move in something like the British pound or the Australian dollar. If this market breaks down, it shows just how weak the Euro truly is, and I would sell it against multiple currencies.
For a look at all of today’s economic events, check out our economic calendar.