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EUR/USD Price Forecast – Euro Bounces Slightly

Christopher Lewis
·2-min read

The Euro has rallied a bit during the course of the trading session on Friday to show signs of life again, but quite frankly this is a market that is trying to figure out what it wants to do next but the candlestick on Thursday certainly gave us a bit of a “heads up” as to where we may be heading next. That type of negativity showing up in the market all of the sudden based upon the retail sales numbers in America suggests that the traders out there are starting to worry about the idea of the Federal Reserve tightening monetary policy, so we have seen the market go looking towards the greenback again.

EUR/USD Video 20.09.21

Furthermore, you have to keep in mind that there are a lot of potentially bad things out there happening, and that could have a major influence on where we go next as well. Remember, the US dollar is considered to be a safety currency, so if there are a lot of concerns out there it makes quite a bit of sense that the greenback attracts inflows. Not only do people want to own the US dollar itself, but they will be involved in the bond market, which has its own implications as it demands that you use those very same greenbacks in order to buy those bonds.

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When you look at the chart, you can see that the 50 day EMA above sloping lower suggests that the downtrend is going to continue, and short-term rallies will probably be sold into. With this I am looking at short-term charts for opportunities to get short yet again. To the downside, I suspect that we go looking towards 1.17 level.

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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