EUR/USD Forecast

The euro went back and forth on Wednesday as we continue to respect the previous trend line that was part of the descending channel.

Fears of the new COVID variant continue to negatively affect investor sentiment, as countries, especially European, re-imposed lockdowns and hurt the euro against the other major currencies.

The euro went back and forth significantly on Tuesday as we continue to try and figure out where we are going next.

For two trading sessions in a row, the EUR/USD tried to stop its losses which extended to the 1.1186 support level, the lowest in 16 months, but the rebound gains did not exceed the 1.1330 level, instead settling around the 1.1270 level today.

The euro gapped a bit lower on Friday, as we saw a little bit of a short squeeze during low volume on Friday.

The pair avoided the bearish weekly closing, but it did not change the general trend, which is still bearish.

The euro rallied significantly on Friday, breaking above the 1.13 level.

The Euro has initially tried to rally on Thursday but gave back the gains, despite the fact that the Americans were away at Thanksgiving.

The positive results of US economic data balanced out expectations of raising interest rates.

The euro broke down significantly on Wednesday to slice the 1.12 level, showing that we are going to continue to go much lower.

Today's trading session is an important one with the releases of significant US economic data, ahead of the Thanksgiving holiday that will affect liquidity in the markets.

The euro initially tried to rally on Tuesday but gave back gains rather quickly.

European COVID restrictions continue to hurt the euro, and accordingly, the bearish pressure for the EUR/USD continued.

The euro continued to slide quite a bit lower during the trading session on Monday as we have broken below the 1.1250 level.

Europe's face-off with COVID infections will continue to hurt the Eurozone economy, which is facing other crises like in energy and global supply chains.