EUR/USD Price Forecast: France Drags Down the Euro

from Daily Forex. This is Christopher Lewis taking a look at the euro against the US dollar. The euro gapped lower to kick off the trading week and test the 1.1150 level. That's an area that was massive support and we bouncing from there showing signs of strength and the fact that we turned around and fell apart suggests that perhaps this is a market that's ready to eventually break down and go further to the downside that would make a certain amount of sense as we continue to see the neverending French debt problems. And although interest rates in the United States are relatively high, this I believe has more to do with France falling apart. Rallies at this point in time I still look at as selling opportunities with the 1.13 level as an area of significant resistance. If we could break above there, then the 1.14 level is the next area that I'm watching. we break down from here, then I think it opens up the possibility of all the way down to the 1.10 level. I don't have any interest in buying the euro, at least not until the French debt crisis gets under control and the fiscal budget is one that satiates the market's uh appetite for crushing the euro itself. Furthermore, we have to keep in mind that somewhere uh this winter, we're going to have to be watching energy supply heading into the European Union. That is still something that could be a bit of a factor here, especially with the German and industrial issues and demand. Ultimately, this is a very negative market. I don't see that changing anytime soon. I remain bearish.