EUR/USD Price Forecast – Euro Reaches Towards Death Cross
The Euro has rallied during the trading session on Monday but gave back some of the gains near the death cross that we are forming. At this point time, the 1.19 level looks to be resistive, and most certainly there is even more resistance above at the 1.20 handle. With that being the case, the market is likely to continue to see sellers given enough time, especially if we continue to see issues with risk appetite as the US dollar is considered to be the ultimate safety asset.
EUR/USD Video 03.08.21
As you can see, if we break down below the 1.1850 level, the market is likely to go much lower, perhaps reaching towards the 1.1775 level. At this point in time, there would be a lot of potential buyers in the area, so if we were to break down below that level, then the market is likely to go looking towards the 1.16 level. Ultimately, this is a market that I think will continue to be very noisy, but it is starting to look more and more like the US dollar is in demand against multiple currencies, so the next month should be rather interesting.
All that being said, I think it is going to be very choppy and therefore it makes quite a bit of sense that we would see a certain amount of indecision, so at this point in time the market is likely to be difficult to hang onto for longer-term trades, but short-term trades may present themselves to the downside over the next several weeks.
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This article was originally posted on FX Empire
