EUR/USD Price Forecast – Euro continues to find resistance

The Euro continues to find resistance at the 1.10 level above, as we are now forming yet another shooting star shaped candle. With this in mind, it’s very likely that the next move could be lower.
Christopher Lewis
EUR/USD daily chart, October 09, 2019

The Euro continues to find the 1.10 level very resistive on an almost daily basis, as we had seen a lot of selling pressure just above there, and now are forming the fourth candlestick in a row that has a long wick testing that level. Because of this, it’s very likely that the pair is going to continue to drift lower, perhaps because of bond buying in America, or perhaps even more likely the fact that the European economy is almost certainly going to go into recession. As the US is still positive from an economic standpoint, this makes quite a bit of sense.

EUR/USD Forecast Video 09.10.19

At this point, it’s very likely that the EUR/USD pair is going to go down to the 1.09 level, which we have seen a certain amount of buying at recently. This is a choppy and consolidation driven market, but certainly it has a lot of downward momentum over the longer-term. This is simply yet another scenario where we “fade the rally” which is exactly how the market has been traded for the last 18 months. With that, I like the idea of fading this move, because quite frankly if we were to break back above the 1.10 level after the last four candlesticks, that would be an extraordinarily strong move that would have me reversing the trade as it would be so crucial. Ultimately, I do believe that we not only go to the 1.09 level but much lower. It’s still a market that short-term traders will be attracted to though, because the moves are going to be that big in the moment.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US