The Euro has gone back and forth during the course of the week to form a massive neutral candlestick, after the hammer from the previous week. At this point in time, the market looks as if it is trying to form some type of basing pattern, but the Euro itself seems to be very soft. At the 1.15 level, the market is likely to continue to be important, because if we can break above there it is likely that the Euro will try to go higher. Any signs of exhaustion on a rally would be a selling opportunity from what I can see. Furthermore, if we were to break down below the hammer from the previous week, then the market is likely to go much lower.
EUR/USD Video 06.12.21
I would suggest that perhaps the Euro is a little bit oversold, so sooner or later we will have to find some type of value in the greenback. If we see any type of bounce at this point in time, I will be looking for that opportunity, but I also recognize that if we break above that resistance above, then it is likely that it becomes more of a “buy-and-hold” type of situation. Ultimately, the market is likely to see a lot of back and forth more than anything else, which is typical for this pair, as it is the most widely asset trading around the world. All things been equal, this also has exterior influence due to the risk appetite of people who are trading in various markets around the world. Keep in mind that the US dollar is considered to be a safety currency, and therefore we see a lot of back and forth due to attitudes.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
Gold Price Prediction – Prices Rise as Yields Tumble Following Jobs Report
Gold Weekly Price Forecast – Gold Markets Test Major Trendline
Oil Price Fundamental Daily Forecast – Threat of Strategic Reserve Release from China Erases Earlier Gains
S&P 500 Weekly Price Forecast – Stock Markets Continue to Slump
USD/CAD Daily Forecast – U.S. Dollar Stays Strong Against Canadian Dollar
GBP/USD Weekly Price Forecast – British Pound Searching for Support