EUR/USD Price Forecast – Euro continues to grind back and forth

The Euro rose slightly during the trading session on Tuesday, as we continue to dance around the 1.10 EUR level, a level that of course will attract a lot of attention. Ultimately, this is a currency pair that doesn’t know what to do in the short term, but longer-term it’s very likely that we will see a certain amount of negativity as the market participants try to figure out what’s going on with the European Union economy and perhaps even more importantly the Brexit situation which is all over the map. While most traders have been talking about the British pound, the reality is that the Brexit situation affects two currencies, not just Sterling.

EUR/USD Forecast Video 25.09.19

Looking at this chart, the 50 day EMA is above and that should cause quite a bit of noise going forward. With that being the case, it’s very likely that we continue to see a lot of choppiness, but that is quite typical for this pair. Rallies at this point should be faded, but I think it’s short-term at best as far as opportunities are concerned. Ultimately, if the market were to break down below the 1.09 EUR level, then we have the opportunity for traders to take advantage of the longer-term downtrend, perhaps going down to the 100% Fibonacci retracement level which is closer to the 1.0450 level underneath. Obviously, that would be a somewhat big move, but it certainly seems as if that’s where the market is trying to get you over the longer-term.

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