EUR/USD Price Forecast – Euro Continues To Grind

The Euro has initially fallen during the trading session on Tuesday, showing signs of weakness yet again, but we have a move higher that has shown that the market is ready to continue to go back and forth. The market is essentially going back and forth overall, which makes sense considering that the pair tends to be very choppy in general. However, we are in a longer term downtrend and I keep that in mind when I take a look at this chart.

EUR/USD Forecast Video 30.10.19

The 61.8% Fibonacci retracement level also features the 200 day EMA, so it makes quite a bit of sense that the market would recognize that as a bit of a short-term “ceiling”, perhaps keep in the market in a downtrend for the longer term. At this point, the market looks likely to see a lot of volatility, so at this point it’s likely to offer selling opportunities above, and perhaps even buying opportunities closer to the 1.10 level. However, I am much more comfortable selling the rallies on signs of exhaustion that I am buying supportive looking balances. This is because of the longer-term trend and of course the fact that the European Union is a bit of a basket case as of late. Beyond that, the US economy is stronger than the European, so it does tend to favor a move to the downside.

However, if we were to break above the 200 day EMA and the 61.8% Fibonacci retracement level near the 1.12 handle, then it could change a lot in this market, perhaps sending the Euro to the 1.14 level above.

Please let us know what you think in the comments below