EUR/USD Price Forecast – Euro Rolls Over Again
At this point, the US dollar is starting to flex its muscles, and it is starting to be seen in the Euro as well. Currently the market looks as if it is going to head towards the 1.1850 level, an area that has offered significant support previously. If that level does get broken down below, it is likely that this pair could drop rather significantly. In fact, we could make a move all the way down to the 1.16 level if that does in fact happen.
EUR/USD Video 30.06.21
If we do bounce, it is obvious that the 200 day EMA is going to come into play, perhaps offering a significant amount of resistance. As you can see, we have formed a couple of shooting stars trying to break above there but breaking above that would be an extraordinarily bullish sign. It does look to me like the US dollar is going to continue to strengthen, not only against the Euro but against several other currencies based upon the most recent moves. With that in mind, looking at the chart, I think that the US dollar likely has further to go.
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If we did somehow turn around and break out to the upside, I believe that the 1.20 level will offer a bit of a resistance barrier, and of course breaking above there would be a very bullish sign and could send this market much higher. All things being equal, I think that what we have here is a scenario and a market that is ready to break down and perhaps even go further. Ultimately, this is a market that I think continues to pressure to the downside until something breaks.
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