EUR/USD Price Forecast – Euro Trying to Recover

The Euro has rallied a bit during the trading session on Thursday, from the 1.12 level. That being said, the market is most certainly bearish and the fact that it was Thanksgiving makes it likely that a lot of this would have been profit-taking or just a lack of liquidity. Quite frankly, the market is likely to have a little bit of a bounce at this point due to the fact that it is so oversold. After all, markets cannot go straight up in the air or fall apart all at once, because there has to be a bit of a “back and fill” type of action.

EUR/USD Video 26.11.21

I think rallies at this point in time will offer a nice opportunity to pick up “cheap dollars”, and therefore that is exactly how I will trade this market. I will fade rallies as they occur, with any signs of exhaustion. I am especially interested in the 1.1350 region, assuming that we can even rally that much. One thing is for sure, I would not be trying to “catch a falling knife” at this point, because the market is so negative at this juncture that it is very difficult to imagine a scenario that we suddenly turn around.

Moves like this do not happen every day, and they do typically means something. The interest rates in America rising the way they have makes this a likely continuation move, and I believe that it is only a matter of time before we go looking towards 1.10 level underneath. That might take a while, but then again I had a target of 1.1250 that I thought was by the end of the year, yet here we are.

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