EUR/USD Price Forecast – Euro Continues to Find Buyers on Dips

The Euro has drifted a bit lower during the trading session on Monday, reaching down towards the 1.1750 level by the time New York came online. However, the think it is interesting about this pattern is that we see the market going back and forth but it is essentially hanging on to gains. That is pretty impressive considering how parabolic the market had been heading into this region, as exhaustion should have been a major concern. The fact that the market is hanging out in this general vicinity is a good sign, because it means that traders are very comfortable holding Euros. If that is going to be the case, then I do expect that eventually we will have enough momentum to break out to the upside again.

EUR/USD Video 11.08.20

To the downside, I think that the 1.17 level offer significant support, and I also believe that the 1.15 level after that is rather supportive. That being said, I do not know that we break out in the short term, simply because we probably have run out of momentum for the time being. Looking at this chart, I think we have some time to kill before we finally take off again. If we do break down below the 1.17 level, I will not necessarily short this pair, I will simply wait for value to appear closer to the 1.15 handle or so. Obviously, I would make any trading decision on a pullback based upon a daily candlestick, as I should have plenty of time to get involved in the uptrend.

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