The Euro has been somewhat resilient during the trading session on Monday after initially gapping lower.
The 1.15 level is a bit of a support level that I think a lot of people will watch from the psychology standpoint, but I also recognize that the interest rate differential will continue to favor the United States dollar, and the 200-day EMA sits just above the 1.16 level.
The 1.16 level will continue to be important, not only from the 200-day EMA showing up, but it's also a significant barrier. Ultimately, this is a market that I have no interest in buying, and I do think that any signs of exhaustion will end up being an opportunity to get short again.
Top Regulated Brokers
Consolidation Range and Market Drivers
The 1.14 level below would be my target overall, as it is the market being stuck in a larger consolidation range. The 1.1850 level above is your ceiling in this pair. The 1.14 level, of course, will be important, and if we were to break down below there, then we could see the EUR/USD market go much lower.
Ultimately, I think this is a market where you continue to see the US 10-year yield be the main driver. And it is worth noting that eventually it fell after spiking higher right around the New York open, but we've seen it turn right back around.
Ultimately, I think Europe has major problems, and that will also be perhaps driven by the idea of energy inflation or, worse yet, a lack of energy for the German industrial sector. The United States continues to see inflows, and I think that is your main story here.
Ready to trade our EUR/USD daily forecast? Here’s a list of some of the top forex brokers in Europe to check out.