EUR/USD Price Forecast – Euro continues to fall apart

The Euro fell hard again during the trading session on Thursday, as we continue to drive towards the 1.10 level underneath. That’s an area that should attract a certain amount of attention, especially as we continue toward the jobs figures on Friday.
Christopher Lewis
EUR/USD daily chart, August 02, 2019

The Euro broke down a bit during the trading session on Thursday again, as we continue to see US dollar strength pick up. The Federal Reserve has suggested that it is more or less in a “wait-and-see mode” when it comes to interest rate cuts, and that has people repricing almost everything. With the European Central Bank likely to ease further into the future, it makes sense that the Euro gets hammered.

EURUSD analysis Video 02.08.19

The market breaking below the 1.11 level was in fact a significant turn of events, and it looks as if we could very well use that is a ceiling going forward. For example, I suspect that we are going to try to retake that level, but it should be rather resistive. The candle stick for the trading session on Thursday being broken down through the bottom could also send this market back to the downside. Breaking through the 1.10 level would open up the possibility of dropping to the 100% Fibonacci retracement level. That’s an area that is closer to the 1.05 level.

This doesn’t mean that we get there overnight, as the Euro tends to chop around quite a bit for the most part. At this point, I think rallies are to be sold unless of course we can take out the candle stick from the Wednesday session. If we were to retake that level, then it would show you real resiliency that you can probably start to believe in. In the meantime, it looks very likely that the market continues to go a bit lower.

Please let us know what you think in the comments below

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