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EUR/USD Price Forecast – Euro Continues to Descend

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The Euro has fallen a bit during the course of the trading session on Monday, to reach down towards the 1.17 level. This is an area that would attract a certain amount of attention, but quite frankly I think the main reason that we have bounced at all is due to the pair being oversold at this point. Because of this, I think this is a market that you will be looking for rallies to sell into or break down below the bottom of the candlestick for the session on Monday to signify there is even more selling coming.

EUR/USD Video 21.09.21

The US dollar of course is thought of as a safety currency, so this suggests that we are going to see a lot of noisy behavior of the next couple of days, as people worry about the credit situation in China. If that begins to become an even bigger issue, the US dollar will spike as a result. As far as Europe is concerned, the energy shortage on the continent at the moment is going to work against the currency itself, but I also recognize that we probably have somewhat limited downside anyway. The 1.16 level is massive support, so I think that comes into the picture as a potential “floor the market” even if we do see a lot of selling. To the upside, if we can take out the 1.19 level, that would be an extraordinarily bullish sign but that is not something that we will be doing anytime soon, as it would take a Herculean effort to get above there.

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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