EUR/USD Price Forecast – Euro Breaks Down

The Euro has broken down a bit during the trading session on Monday, breaking towards the 1.18 level. That of course is an area that will attract a certain amount of attention, but the most important thing to pay attention to on the chart is the fact that we had broken down through a major uptrend line, and then pulled back to test it again. By pulling back to that area and showing signs of resistance, we could be looking at a major trend change. Underneath, the 1.17 level of course is going to continue to look like a target, right around where the 50 day EMA is sitting.

EUR/USD Video 27.10.20

The European Union has to worry about expanding coronavirus figures, and so does the US. However, the US treasury markets provide a bit of a safe haven so this is why we may see more of a shift towards the US dollar. That being said, the market is likely to be very noisy to say the least, so therefore think it is only a matter of time before you see more of a “sell on the rallies” type of situation. This being said, the market is one that you need to be very cautious with, but it certainly looks as if we are getting exhausted in general.

Ultimately, I believe at this point in time the market is simply trying to figure out what the next a larger move is. In the short term, it is probably more or less a range bound type of market with more of a downward tilt over the next couple of trading sessions as we await the election results.

For a look at all of today’s economic events, check out our economic calendar.