EUR/USD Price Forecast – Euro Continues Range Bound Trading

The Euro fell a bit during the trading session on Tuesday, as we continue to see a lot of range bound trading. Ultimately, this market sees the 200 day EMA above as a major barrier, and as a result it will be difficult to break out to the upside.
Christopher Lewis

The Euro initially trying to rise a bit during the trading session on Tuesday, but then turned around to show signs of negativity again. All things being equal though we seem to be stuck the 1.12 level, and the 1.1075 level. Beyond that, the 200 day EMA is sitting at the 1.12 level, an area that was previously the 61.8% Fibonacci retracement level in an uptrend. Quite often, when we break through the 61.8% Fibonacci retracement level, it means that we will go looking towards the 100% Fibonacci retracement level. Longer-term, that means that we could be going as low as 1.05 USD. At this point, I’m not willing to swing for that big of a move but I do recognize that there is a lot of resistance above.

EUR/USD Forecast Video 06.11.19

If we were to break down below the 1.1075 level, it would suggest that we had formed a small “double top” and the 200 day EMA, sending this market lower. The European Central Bank should continue to be very loose with its monetary policy so that wouldn’t necessarily be a huge surprise. Granted, the Federal Reserve also seems to be relatively loose with its monetary policy but at the end of the day the US dollar is considered to be the “safety currency” when it comes to this pair. With the very poor economic numbers that we have seen coming out of the European Union as of late, it makes sense that we would continue to see downward pressure.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.