21.06.202109:48 Forex Analysis & Reviews: Hot forecast for EUR/USD on June 21, 2021

Although the information background for the single European currency was completely absent, it still continued to decline. And this is despite the fact that over the previous couple of days, it has already lost a lot in value. Apparently, it was pulled down by the pound, which suddenly came under pressure due to extremely weak retail sales data, which showed that the British economy is not doing as well as we would like. The confirmation of this thesis is that the scale of the decline in the single European currency was somewhat more modest than for the pound. Whereas in terms of time, the match is almost perfect. At the same time, it is impossible to deny the excessive oversold nature of the single European currency, and therefore, the need for a correction. Another thing to remember is that a correction usually needs at least some real reason, in the form of macroeconomic data or statements by certain officials. However, the single European currency has already fallen in price so much. And a completely empty macroeconomic calendar is quite suitable for this. On both sides of the Atlantic, no news is expected today, and this may well be an excellent backdrop for that very correction.

The European currency lost about 2.3% of its value during the last trading week, which is considered a strong price change.

From the point of view of technical analysis, the intense downward movement did not just lead to a breakdown of the psychological area 1.1950-1.2000-1.2050, and a descent to the levels of the beginning of April, which leads to a rethinking of market ticks.

As for the market dynamics, here, as before, there is an acceleration in the compartment with a high coefficient of speculative operations.

If we proceed from the current location of the price, it will be seen that market participants have already fixed below the psychological area 1.1950/1.12000/1.2050, despite the fact that the European currency has the highest oversold status, against the dollar.

In this situation, as before, there is a high level of oversold euro, while the market has formed an amplitude in the range of 1.1845/1.1885. The best trading tactic is considered to be the method of breaking through a particular stagnation boundary, working on the principle of outgoing momentum.

From the point of view of complex indicator analysis, it can be seen that technical instruments follow an intense downward course, unanimously signaling a sale on all major time periods.