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EUR/USD Price Forecast – Euro Gets Hit After Dovish Stance

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The Euro initially rallied during the course of the trading session on Thursday but rolled over as the ECB has released a relatively dovish statement and look likely to remain loose for the foreseeable future, much like other central banks around the world. At the same time, it appears that the bond market still heavily favors the United States over Germany as far as yields are concerned, so if that is going to be the case it makes quite a bit of sense that we would see more of a slant to the United States. With that being the case, it looks very likely that we will test the 1.17 level, and then possibly even the 1.16 level underneath.

EUR/USD Video 23.07.21

At this point, I believe that if we rally towards the 1.1850 level, it is probably going to be a time to start selling at the signs of exhaustion that will almost certainly be seen. At this point in time, the market certainly looks as if it is one that you want to favor to the downside, and it is also worth noting that we are getting ready to get the so-called “death cross”, when the 50 day EMA crosses below the 200 day EMA, something that a lot of longer-term traders pay close attention to.

While I do like the US dollar in general right now, it is probably going to do a bit better against other currencies as this pair has been so noisy as of late. It has been finding to form some type of base, but at this point in time it looks as if it is more than likely going to continue to slump lower.

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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