EUR/USD Price Forecast – Euro continues to drift lowerThe Euro fell a bit during the trading session on Wednesday, as we continue to grind below the 1.14 handle. However, this is a market that has plenty of support underneath so I feel that the downside is probably somewhat limited.
The Euro has drifted a bit lower during trading on Wednesday, but quite frankly we are in a bit of a trading range and it’s likely that there are buyers underneath. I do believe that we could go a bit lower, but the 1.13 level underneath should continue to be massive support. The biggest problem with this market is that it simply isn’t going anywhere in the near-term as there are too many conflicting issues out there.
Euro to Dollar Forecast Video 07.02.19
Looking at this chart, I think that the impulsive candle to the upside from the 1.13 level will continue to cause support, and I think that the 1.13 level will be looked at as the “floor in the market” at this point. I do recognize that the 1.15 level above is massive resistance as we not only have the obvious pull back from that level, but we also have the 200 day exponential moving average just above there that will continue to cause a lot of technical issues. Regardless, I do think that we are trying to form a bit of a bottoming procedure, which takes significant time to do after we have sold off for the last several years. The 61.8% Fibonacci retracement level is just below the 1.12 level as well, so I think it’s only a matter of time before things start going higher, not the least of which will be the reaction to the Federal Reserve becoming a bit more dovish than once thought. If the European economic numbers could get a little bit stronger, that could be the catalyst to finally go higher.
Please let us know what you think in the comments below