EUR/USD Weekly Price Forecast – Euro Looking Towards 200 Week EMA

The Euro has broken down a bit during the course of the week to go looking towards the 1.16 level underneath. At this point in time, the market looks as if it is going to start falling towards the 1.16 level, which begins a massive support level that extends down to the 1.15 handle. With that being the case, the market is more than likely going to continue to see selling pressure, and if we do somehow break down below the 1.15 handle, it is very possible that the bottom falls out in this market collapses.

EUR/USD Video 23.08.21

The market is moving basically with the idea of US dollar strength more than anything else, and as a result I think you need to pay attention to the greenback against multiple currencies, not just this one. Quite frankly, the US dollar does look as if it is ready to take off, and that is something that you need to keep in the back of your mind. After all, there are a lot of concerns out there, and quite frankly the United States is currently talking about tapering, which of course will strengthened the greenback overall.

Further exacerbating the issue is the fact that the market is currently trying to price in the idea of the fact that the global growth story may not be as strong as originally anticipated. The reopening trade has been pushing markets for quite some time, and now that we have seen that several economies around the world are struggling, that is going to have more of a rush towards the greenback as well. Quite frankly, something seems very troubled under the surface.

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