EUR/USD Price Forecast – Euro breaks down as Draghi speaks

The EUR/USD pair has fallen during the trading session on Thursday, reaching towards the 1.1250 level. That is the beginning of significant support down to the 1.10 level, which has been the bottom of this consolidation for a while. That being the case, I would anticipate that there is probably some support to be found soon, but if we close below the 1.12 handle, we could go a little bit lower.

EURUSD analysis Video 08.03.19

Looking at this chart, on the longer-term time frames there is a massive amount of support to be found in the 1.12 region, as it is the 61.8% Fibonacci retracement level. There is a lot of institutional demand right there, so I don’t know that we break down below there. If we do, that is going to be a very negative sign to say the least. After the press conference, the market will almost immediately turn its focus on the jobs number coming out of the United States on Friday, so the downside is probably going to be somewhat limited. The question is whether or not value hunters will come back in and try to pick this market up. The sealing to the upside is at the 1.15 handle, so at this point we haven’t left the range. If we do, then it’s time to completely reassess the entire situation. A lot of volatility is probably what we’re going to see more than anything else.

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