EUR / USD forecast: October 2021
Below the 1.16 level then we have a clear sell signal, but above the 1.1750 level there is a possibility that we will resume the action that we have seen for several months.
The euro fell for most of September, hitting the 1.17 level. That being said, we are sitting on top of a major support level that extends up to the 1.16 level. Having said that, I think October should be quite an important month, as it could give us a bit of a head start on where we are heading in the longer term.
If we were to fall below the 1.16 level, it is very possible that we could descend to the 1.14 level, an area that was previously resistance.. On the other hand, if we were to turn around and rebound a bit, it could send the market towards the 1.19 level. This is an area that has encountered significant resistance. At this point, the market will likely see this area as a major inflection point as it will determine the next hundred pips.
The question now is whether or not we are collapsing, or whether we are turning around to show signs of consolidation again.. All of this will relate to the interest rate differential and perhaps even to the strength of the European Union. After all, the European Union faces significant supply shortages, which opens up the possibility of a weakening economy. At this point, I think the next week or two will be crucial as to where we go for the next 200 pips.
All other things being equal, this is a market that is likely to experience volatile behavior more than anything else, but we have a few weeks ahead of us that will determine the longer-term outlook.. All other things being equal, this is a market that I think is likely to favor consolidation, but if we get some sort of major ‘risk disappear’ situation then it is very likely that the US dollar will will continue to strengthen a little. the image. That being said, I think we’re on the brink right now and would expect more confusion than anything else. Below the 1.16 level then we have a clear sell signal, but above the 1.1750 level we may resume the action that we have seen for several months. Keep your stance size reasonable no matter what you do.