EUR/USD Weekly Price Forecast – Euro Breaks Through Support for the Week

The Euro has initially tried to rally during the course of the trading week, but the 1.16 level continues to be very difficult to deal with. At this point time, believe that the market probably continues to go much lower, especially as we are closing towards the bottom of the range. The 1.15 level is psychologically important and breaking through that more than likely will continue to see downward pressure on this market. All things been equal, I think what we have here is a scenario where the rallies are going to continue to be shorted, especially as the ECB looks very unlikely to do anything as far as tapering is concerned.

EUR/USD Video 15.11.21

On the other side of the Atlantic, the Federal Reserve is more than likely going to continue his tapering program, driving up interest rates in general. With this being the case, it makes quite a bit of sense that we would continue to see the Euro decline against the greenback. The market will more likely than not be one directional, but the occasional pullback may occur. If we get that pullback, I will be more than willing to jump in and start shorting. In fact, it is not until we break above the 1.16 level on at least a daily close that I would be a buyer of this pair, or perhaps if the European Central Bank changes its stance. That does not look likely anytime soon, so I assume that I am going to remain short of this pair for the foreseeable future.

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