EUR/USD Price Forecast – Euro Breaks Down Towards 50 Day EMAThe Euro has broken down significantly during the trading session on Friday but has a lot of technical support just below.
The Euro has broken down a bit during the trading session on Friday, reaching down towards the 50 day EMA after there was a bit of a “risk off” type of feel early in the session. However, the 50 day EMA is starting to offer support, and therefore it’s likely that the market will continue to see a lot of choppy back-and-forth type of trading, but at this point the market looks to be paying attention to the 1.11 handle, which is the middle of the when it comes to the overall trading ranges between the 1.12 level above and the 1.10 level underneath. In other words, we are essentially at “fair value.”
EUR/USD Video 20.01.20
Looking at the chart, I would fully anticipate that there will be some type of bounce year but if we were to break down below the 1.1075 level, then it opens up the door down to the 1.10 level underneath. All things being equal, I think we are still going to be trading in this 200 point range going forward, because quite frankly this pair doesn’t know what to do with itself. If you are a short-term trader, you may get a short-term buying opportunity but don’t expect more than about 15 or 20 pips on any move. If we do break out of this 200 point range, then we could get something going but, in the meantime, I would ask for too much as this is a market that simply has nowhere to be anytime soon. The European Union is relatively weak right now, and the Federal Reserve is nowhere near tightening its monetary policy. In other words, we will see more of the same.
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