EUR/USD Price Forecast – Euro continues to grind higher

The Euro rallied again during the trading session on Tuesday as we broke above the Monday highs. That’s a very bullish sign and should continue to keep this market going forward. Overall, I like the idea of buying the Euro in the short term, as we are closer to the bottom of the larger consolidation area that I have marked on the chart. That doesn’t mean we have to go higher, just simply that the odds favor it.

EUR/USD Forecast Video 10.04.19

Keep in mind that the Federal Reserve is on the other side of the trade and they are trying to do what they can to kill off the US dollar, so would not be surprising at all to see a bit of a bounce from here. The 1.15 level above is massive resistance, just as the 1.12 level below is massive support. The support features the 61.8% Fibonacci retracement level, which of course will attract a lot of attention in general. I do like the idea of buying the Euro until we get to about the 1.14 handle, which is the most recent high or just short of it.

If we made a fresh, new low, basically breaking below the 1.1150 level, then we could see the market break down towards the 1.10 level. This would probably be with some type of massive “risk off” move in markets overall. I do not think that happens though, so at this point I much more likely to prefer the upside or dips.

Please let us know what you think in the comments below