EUR/USD Price Forecast: Euro Bears Eye 1.1000 As Resistance Builds

The euro continues to be “stuck” in the same area it has been in for some time, and I am currently looking at this as a potential opportunity to take advantage of “cheap U.S. dollars” as they appear.

EUR/USD

The euro has drifted a little bit lower during the trading session here on Wednesday as we continue to see a lot of back-and-forth trading at the moment, and a market that is trying to sort out whether or not the interest rate differential will continue to be a major driver here, or if this is a situation where people are starting to price in the idea that perhaps energy will not be such a difficult place to be when it comes to European trading.

That being said, it is worth noting that natural gas is expected to be extraordinarily expensive, and that could weigh upon the German industrial base.

I like the idea of shorting this pair

I like the idea of shorting this pair, but I am not necessarily against the idea of waiting until we get to the 1.1350 level to offer a little bit of a shorting opportunity on signs of exhaustion.

Now that the 50-day EMA is racing towards there as well, it opens up the possibility, to me at least, of having quite a bit of market memory and resistance build. In other words, I am looking to short the euro, but I would love to get an opportunity to find cheaper U.S. dollars at the moment.

I still believe that it is likely that the euro could drift down towards the 1.10 level before it is all said and done. This could take some time, but ultimately, this is the overall direction that I am looking to play out. I have no real interest in buying the euro, as things stand now.