EUR/USD Daily Price Forecast – EUR/USD Likely to be Bullish

Over the last few weeks, we have been seeing the rise and rise of the US dollar and the seeds of this rise had been sown during the first half of the year. For those who are closely associated with the markets, they would have seen this coming for the past few months and they would be glad that it is upon them as of this point. But the fall in the value of the EURUSD has not been very strong or hasnt been unidirectional at any point of time over the last few months.

EURUSD Strong Fundamentally and Technically

Rather than a quick fall, what we are seeing is a slow drip downwards and it has to be said that the Euro has managed the situation quite well as it continues to trade above the 1.10 region and continues to punch above its weight. The pair seems to be forming a base around the 1.15 to 1.16 region and on the daily chart, we can see that the pair is trying to form a large head and shoulders formation with the head being in the region that the prices were on August 15. This shows that there is a scope for the bullish momentum to build as we head into the last part of the year as long as the shoulders continue to hold in this formation.

On the fundamental side, things are pretty much clear for the USD in the days ahead and we believe that most of that has already been priced into the markets. The US has already shown its hand as far as the trade wars are concerned and also, we have seen that the Fed has been hiking rates in the same way that the market has been expecting it to do so. So it is clear that the markets are looking for something more from the Fed and the US and that can only lead to disappointment. So, we believe that the tide will turn in due course of time and that will provide an opportunity for the bulls to make a comeback with respect to the fundamentals as well.