Forecast for EUR/USD on November 16, 2021

The euro lost about 80 points on Monday and entered the range of the long-standing consolidation of November 2018-January 2019 1.1300-1.1448, which brought the price into a range of uncertainty, as we wrote about in yesterday's review: "If the price settles below the lower border of the 1.1420 range , then the further development of the price is not predictable (it can be a consolidation or a decline of any geometric shape, since the price is intruding into the chaotic range of three years ago, 1.1300-1.1450), until it reaches the target level of 1.1300 (August 2018 low), where the price will appear one more reversal opportunity. "


At the moment, on the daily chart, we see another probability of convergence reversal formation. It may or may not happen. If the price still continues to decline to 1.1300 and after that Marlin loses the opportunity to form convergence, then the euro's fall may take a longer character: the target is 1.1170, then 1.1050. On the practical side, going short looks like a promising but risky idea.


On a four-hour chart, the opportunity for convergence has already been lost. Now, for a reversal signal, you need to wait for the price to exit above the MACD indicator line. This can happen when the price breaks the level of 1.1448, which will correspond to the price exit above Monday's opening. We are waiting for the development of events. Lateral movement may continue.

The material has been provided by InstaForex Company -

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