EUR/USD Weekly Price Forecast – Euro Continues to Slump

The Euro initially tried to rally during the course of the trading week to reach towards the 1.20 level which was always going to be a bit difficult. Now that we have pulled back drastically from there and started to dig back into the hammer from the previous week, it looks as if there are serious questions being asked about the Euro right now. After all, the bond markets in America continue to see higher yields, and as a result that will more than likely continue to make the US dollar quite a bit resilient. If that is going to be the case it is likely that we are going to try to break down through the bottom of the hammer from last week.

EUR/USD Video 22.03.21

To the upside, if we were to break above the 1.20 level, then I think that the Euro can go to the 1.22 level, possibly even the 1.23 handle. We need to see the bond markets calm down in America before that happens, and quite frankly I just do not see that happening in the short term. Ultimately, I look at the range of the hammer from last week as a major decision point, because we have a couple of handles to go if we break out of it. To the downside, the 1.16 level underneath would be my next target on a breakdown. That would almost certainly coincide with the 10 year note in America offering more than 1.75% yield, and as a reaction to the French locking everything back down.

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