EUR/USD Price Forecast – Euro Trying to Build Up Momentum

The Euro has pulled back just a bit during the course of the trading session on Tuesday, only to turn around and reach towards the highs of the Monday candlestick. If we can break above the candlestick, then the market will go looking towards the 1.1775 handle, and then possibly the 1.18 level. Nonetheless, this is a market that is still technically in a downtrend, so until we can break above that high near the 1.18 level, you still have to look at the market through the prism of “selling the rallies.”

EUR/USD Video 25.08.21

Ultimately, this is a market that has recently formed a bit of a “death cross”, which of course is very bearish for longer-term traders. Underneath, the 1.16 level is massive support as well, so ultimately this is an area that I do believe holds, so if we were to break down below that level it would be an extraordinarily negative sign. That does not mean that we will not at least test that area, but in the short term it looks like we are going to fight to try to go to the upside.

The Jackson Hole Symposium of course will have everybody’s attention this week, as the talk of tapering continues to be the most important thing that people pay attention to when it comes to the US dollar, which is essentially what is driving everything right now. That will not be any different here, as of course the Euro is considered to be the “anti-dollar.” We are also technically trying to form some type of falling wedge, so that could be a slightly bullish sign as well.

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