EUR/USD Price Forecast – Euro Runs Into Brick Wall

·2 min read

The Euro has shown itself to be a bit hesitant near the 1.16 level, an area that extends to the 1.1650 handle. With that being the case, the market is likely to continue to see a bit of hesitation, so the question now is whether or not we can build up enough necessary momentum to break out to the upside and go looking towards the 50 day EMA, or do we pull back a bit?

EUR/USD Video 15.10.21

Looking at this chart, we could very easily see this market roll right back over, but if we do break above the 1.1650 level, then it is possible that we will see a little bit of an explosion to the upside. What is interesting is that the US dollar is failing a bit during the course of the trading session around the world, and of course the last week or so. The Euro is just now starting to pick up momentum, and I think there are too many issues in the European Union to get long of this market when you could buy something else against the dollar.

That being said, if we break down below the bottom of the recent consolidation, we will probably take out the 1.15 level and go much lower. Ultimately, that could lead to a significant break down in the Euro and could also signal that the US dollar is starting to flex its muscles again. That obviously would be very “risk off”, so even if you do not want to trade this market, you should probably keep an eye on it.

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

This article was originally posted on FX Empire

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