EUR/USD Price Forecast – Euro Continues to Fight
The Euro has rallied a bit during the course of the trading session on Wednesday to suggest it is still in the midst of recovery. With that being the case, the market is likely to see a lot of noisy behavior, as there is a resistance just above at the 1.1675 handle. Furthermore, the 50 day EMA is starting to crater towards that area as well, so I think that also comes into the picture as resistance. That being the situation that we are in, I think this at best can be used as a secondary indicator for US dollar strength.
EUR/USD Video 28.10.21
If this pair continues to rally, I suspect that you probably have more money to be made in the British pound, Australian dollar, and some other currencies. True, the Euro can rally as well, but I think it has less momentum than some of the other currencies. Ultimately, I think the market will continue to be very noisy, and therefore difficult to trade from a bigger position. Nonetheless, I do like this pair in the short term, but I also recognize that the 1.1750 level is probably going to continue to be a major problem.
To the downside, if we break down below the lows of the last couple of days, then we will go looking towards the lows again, perhaps even taking out the 1.15 handle. With this being the case, it is more than likely only a matter of time before we would plunge from there if we were to break down below the 1.15 handle.
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This article was originally posted on FX Empire
