The Euro has gone back and forth during the course of the trading session on Friday as we continue to hang about the 1.18 level. That being the case, the market likely is going to see a lot of choppy behavior in this general vicinity, as it has been important more than once. Nonetheless, this certainly looks as if the market is going to continue to fade a bit, and therefore I think that the market is likely to see an attempt to reach down towards the lows earlier this week. If we get below there, then it opens up the possibility of a move to the 1.17 level, followed by the 1.16 level which was massive support.

EUR/USD Video 19.07.21

The 1.16 level being broken to the downside would be a major failure in the Euro and send this market much lower. Nonetheless, I do think that we are starting to see US dollar strength across-the-board, and the US Dollar Index is doing everything it can to break out. Because of this, I do think that it is only a matter of time before the Euro gets hammered again, and the latest action is just simply more or less a continuation of the major move lower.

German Bond yields continue to drop relative to US bond yields, which has a lot to do with the way money is flowing right now, and there clearly seems to be no drop in that move. As long as that is going to be the case, then it makes quite a bit of sense that we will see the common currency drop against the greenback.

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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