EUR/USD Price Forecast – Euro bounces

The Euro has initially fallen during the trading session on Wednesday but found enough support underneath the 1.09 level to turn around and show signs of life again. That being said though, there are a couple of inverted hammers from last week sitting just above current pricing, and of course the psychologically important 1.10 level. That is an area that should continue to be important due to the large, round, psychological significance, and of course the fact that we had a major breakdown candle last week from that level.

Euro to Dollar Forecast Video 03.10.19

Above there, the 50 day EMA is sitting just above the most recent high and reaching towards the 1.10 level. That’s an area that should be a lot of confluence just waiting to happen, and in this choppy and negative market it makes quite a bit of sense that sellers would show up in that area. Because of this, I’ll be waiting for this market to rally a bit and then looking to sell closer to that region. The area of resistance extends to at least the 1.11 level, and at this point I’m not interested in buying until we break above the 200 day EMA which is currently trading near the 1.12 level. Ultimately, this is a market that should continue to see a lot of volatility, but it still should be negative longer term as the European Union economic conditions are well lagging the United States conditions. Bond yields being positive in America of course helps this pair drop as well.

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