EUR/USD consolidates below 1.1300 amid firmer US dollar -

EUR/USD consolidates below 1.1300 amid firmer US dollar

November 22, 2021

EUR/USD remains on the defensive below 1.1300, slightly above the 16-month low of 1.1250 touched on Friday. Hawkish Fed expectations continued underpinning the greenback amid fresh European COVID-19 jitters. Oversold RSI holds bearish traders from placing fresh bets, though any recovery seems elusive.

The weekly chart is bearish, but the price is moving into a demand area and is probably due for a correction and traders will be aware of this and potentially less committed to the downside at this juncture. The price action is certainly bearish and the bias is to the downside, although bears might be waiting for a discount and waiting for at least a 38.2% Fibonacci level.

The price is teasing by breaking to fresh lows in the open and seeming as though it is going to continue to the downside, which of course is highly probable given the recent price action. However, selling in a demand area might not be the best methodology as part of a trading strategy.