The Euro, EUR/USD, picked up momentum last week to the downside and reached our Monthly target of 1.0990. This was a trade that we forecasted back on 09/26/2021.
While the Friday selloff to 1.0885 was fast and furious and closed the week slightly above 1.0930, were of the opinion that we have one more push left to fulfil our more recent Weekly forecast to 1.0830.
At that point, the market will have convinced itself that the bottom is wide open for the Euro. This may prove to be an exaggeration at precisely the wrong time as we are approaching over sold conditions for EUR/USD and further selling towards 1.0800 should set this pair up for a short squeeze higher to the 1.12 area.
This weeks dynamic resistance comes in at 1.1070/80 and dynamic support between 1.08 and 1.0790.