EUR/USD Price Forecast – Euro Trying to Recover

The Euro has rallied significantly during the course of the trading session, and at this point in time it is likely that we will find plenty of resistance above due to the fact that we did in fact fall for a reason. That being said, we are a little bit oversold, so this bounce certainly makes quite a bit of sense. With this being the case, the market is likely to continue to see downward pressure over the longer term, but we may have a little further to go before we can get short. At this point, I am waiting to see signs of exhaustion that I can take advantage of.

EUR/USD Video 05.10.21

Until then, the main goal is to not get dragged into trying to buy this bounce, as the market clearly has been in a downtrend. Furthermore, any signs of trouble will more than likely have money running directly into the US dollar again anyway. With this in mind, I like the idea of sitting on the sidelines and waiting for an exhaustive looking candlestick that I can take advantage of. I suspect that the 1.17 level will also be significant resistance as well, so that is most certainly an area that one needs to pay close attention to.

In fact, it is not until we clear the 1.1750 level that I would consider buying the Euro, and even then, I would need to see US dollar weakness across-the-board. Beyond that, you also have to pay attention to the 10 year note, and of course the yield that come along in that market, which has a major influence on what happens next with the US dollar.

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