Advertisement
Advertisement

EUR/USD Price Forecast – Euro continues to fall

By:
Christopher Lewis
Updated: Oct 27, 2018, 06:09 UTC

The EUR/USD pair fell again during the trading session on Friday as the destruction of the Euro continues. This was exacerbated this week by ECB President Mario Draghi suggesting that the weaker than anticipated economic numbers will continue to keep the monetary policy soft.

EUR/USD daily chart, October 29, 2018

The Euro broke down a bit during the trading session on Friday again as there is a large “risk off” move, with futures dropping quite drastically as far as stock markets are concerned. At this point, we are testing a major support level in the form of the 1.13 level, so a bounce from here would not be overly surprising. However, on the chart I have the 1.1450 level and the 1.15 level above there marked with dark heavy lines. I believe that this is major resistance, so any bounced towards that direction will probably be a selling opportunity.

If we do break down below the hammer from early August, then the market will probably unwind well below the 1.13 level, perhaps down to the 1.12 level, and then to the 1.10 level after that. As financial markets continue to shutter, that will of course continue to push money into the United States, punishing this pair. The European Union is a bit of a mess, and the situation in Italy is not helping the situation either. Perhaps some agreement on the Italian budget would help, but ultimately I think the bigger drivers are pushing this pair around right now, and although I expect a bounce, it should end up being a selling opportunity once we see the momentum slowed down, especially near the aforementioned levels that are Mark clearly on the chart attached to this article. If we did break the 1.15 handle, then perhaps we could get some real momentum.

EUR/USD Video 29.10.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement