EUR/USD Price Forecast – Euro Continues Consolidation

The Euro dipped initially during trading on Wednesday but has failed to hang onto the losses. At this point, it’s likely that the market will continue to be very noisy.
Christopher Lewis
EUR/USD daily chart, October 24, 2019

The Euro has broken down during the trading session on Wednesday, reaching below to the 1.11 handle. This is an area that cost a bit of support though, and the candlestick is starting to look rather bullish. However, I don’t necessarily think that it is a market that is going to take off to the upside because when you look at the longer-term charts, we have made these moves several times over the last 18 months. The Euro has gone a bit parabolic, so it’s very likely that the market will continue to see a bit of indecision in this area. Beyond that, the 200-day EMA above is going to cause significant resistance as it is a longer-term trend signal.

Euro to Dollar Forecast Video 24.10.19

If the market can break down below the 1.11 handle, then it opens up a move down to the 1.1033 handle, which is essentially where the 50-day EMA is. At this point, there should be more support as well. This pair does tend to grind and chop more than anything else, but it has a negative bias to it as it continues to drift lower over the longer term. Ultimately, if the market continues lower it would be a 50% retracement test that showed signs of resistance yet again. That is rather common, and something that a lot of traders will be paying attention to. If that does in fact come to fruition, we could see the euro go as low as 1.09 eventually. Obviously, it’s going to take some time to get there though, as this pair doesn’t typically move very quickly.

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