EUR/USD Price Forecast – Euro bounces to kick off week

The Euro rallied significantly during the trading session on Monday, reaching towards the 1.1250 level. We have pulled back a bit from there, but the 1.12 level underneath should continue to be rather supportive. Overall, I do think that the Euro is going to recover a bit, even though the ECB has suggested that they are going to stay soft for quite some time. After all, the Federal Reserve is in no position to do anything other than sit still, if not cut rates down the road.

EUR USD Forecast Video 12.03.19

The 1.12 level is near the 61.8% Fibonacci retracement level, based upon the larger move that led to the consolidation that we are in now. With that being the case, it’s very likely that we will continue to see a lot of choppiness in this area, but I do believe that the selling of the Euro was a bit overdone. However, if we were to break down below the 1.1175 handle, then the Euro could fall rather hard. All things being equal though, we are still within the larger consolidation area, so you should treat it as something that’s going to continue to go on until it doesn’t. The 1.13 level above being taken back by the buyers would be a very bullish sign. At that point, it would be almost a foregone conclusion that we could go to the 1.14 level next. Expect choppiness, but I do think that people are starting to step in and pick up value.

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