EUR/USD Price Forecast – Euro continues sideways action

The Euro has been somewhat lackluster during the trading session on Friday, going back and forth in very undecided mannerisms. With this, it looks as if we are simply killing time trying to figure out where to go next. I believe that the 1.11 level is going to continue to hold as resistance so it’s more likely than not that we drop from here, and if we clear the 50 day EMA I anticipate that the Euro will go looking towards the 1.10 level next, which was the most recent low and of course a large, round, psychologically significant figure. Because of this, I would be very cautious about going “all in”, on any type of bullish play. In fact, I’m not a buyer until we break above the 200 day EMA which is currently closer to the 1.12 handle, meaning that we have a way to go.

EUR/USD Video 25.11.19

Beyond that, the Euro has been in a downtrend for several years now, so there’s no need to fight it. If you look back on the longer-term chart, you can see that every time this market has rallied, it’s turned around to fall right back down. Ultimately, if you are just patient enough it does tend to turn in your favor. Breaking below the 1.10 level opens up the move to the 1.09 handle, which eventually opens up the move to the 1.0750 level, the scene of a gap much lower. It will take an age to get there, but it does seem to be the target.

Please let us know what you think in the comments below