EUR/USD Price Forecast – Euro Continues To Find Sellers

The Euro initially tried to rally during the trading session on Monday, but then found the 50 day EMA to be a bit resistive. By doing so, the market has rolled right back over and slammed into the 1.10 handle. This is an area that should continue to be a bit dicey, as the 1.10 level attracts a lot of attention. If we do break down below there, then the market is likely to go down to the 1.09 handle. Looking at this chart, it does look rather negative but it’s also very choppy.

EUR USD Forecast Video 26.11.19

The area below the 1.09 level then opens up the door to the 1.0750 level underneath. At this point, it still looks very likely to be a market that is sold every time it rallies, as there is no real strength of the Euro and of course the German Ifo announcement didn’t necessarily convey a lot of strength either. Granted, did come out at 95, as opposed to the 94.9 reading expected, but it’s hardly confidence inspiring in an economic area that has been struggling in general. I believe that the Euro will continue to struggle in general, especially considering that the European Central Bank is likely to continue loosening monetary policy. At the same time, we have the Federal Reserve stepping on the sidelines and therefore in theory at least becoming a bit more hawkish. Overall, I look at rallies as an opportunity to sell the Euro until the market can close decidedly above the 200 day EMA.

Please let us know what you think in the comments below