EUR/USD daily chart, July 21, 2016

EUR/USD Forecast July 21, 2016, Technical Analysis

The EUR/USD pair went back and forth during the course of the day on Wednesday, testing the 1.10 level. This is an area that has been the bottom of the recent consolidation area, so it makes sense that the buyers would get involved. With this being the case, it’s very likely that we could bounce for the short-term but I still believe that a break down is going to happen given enough time. After all, there are a lot of concerns when it comes to the European Union at the moment, and of course the US dollar tends to be a bit of a “safety currency.”