EUR/USD Price Forecast – Euro Continues to Grind Back and Forth

The Euro has rallied a bit during the trading session on Tuesday but looks as if it is ready to give back some of the gains. This should not be a huge surprise, because we had recently broken through a major uptrend line, only to turn back and test it a couple of times. Looking at this chart, you can see that the 1.19 level has been important more than once, so I think that is essentially your “huge barrier” that traders are trying to overcome. If we do, then there should be a significant amount of resistance all the way to the 1.20 level.

EUR/USD Video 28.10.20

At this point in time, it is probably going to continue to be a “fade the rally” type of market. Ultimately, this is a market that the sellers are starting to flex their muscles, even though we have had a nice grind higher. The reality is that there is a major barrier that we have not been able to overcome, so having said that, it is going to take some type of major event to finally break above there. I do think we could make an argument for, but at this point in time, that we need to make a huge move.

At this point, the Euro has been rather resilient but all it is going to take is the realization that the European Union is starting to lock down economies for the markets to behave in a negative manner. Furthermore, if we do not get any hope of stimulus, that will also work against the value of this pair as well.

For a look at all of today’s economic events, check out our economic calendar.