EUR/USD Price Forecast – Euro Pulls Back After Explosive Move on Friday

The Euro has pulled back just a bit during the course of the trading session on Monday, as we had seen a bit of overreaction in what would have been very thin volume on Friday. That being said, the Euro is still in a strong downtrend, so I am not looking to buy this pair, but would love to see a little bit of a bounce in order to take advantage of in order to pick up “cheap dollars.”

EUR/USD Video 30.11.21

Looking at this chart, the Friday candlestick is very important, but you should also keep in mind that it is not a normal day as it was the day after Thanksgiving. Whether or not we would have seen such a huge move is a completely different question, and I think one that will be answered over the next couple of days. The 1.1350 level above could be significant resistance, so that is essentially what I am watching for. Whether or not we get it might be a completely different question, but I think that what you are looking for is some type of exhaustion to take advantage of. I have no interest in buying this pair, at least not anytime soon.

Keep in mind that the Euro is a bit of a special situation, as it has been beaten up against the US dollar quite drastically, even more so than many of its contemporaries. Because of this, I would not short the US dollar against the Euro, at least not unless we see the dollar falling apart across the world. I do not see that right now, so I think it is simply a matter of waiting for a selling opportunity.

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