EUR/USD Price Forecast – Euro Continues To Grind Higher

The Euro rallied again early on Wednesday, reaching towards the 1.1850 level as the world awaits stimulus coming out of the United States. That being said, never underestimate the ability of politicians in the United States to disappoint people. We are currently testing a major selloff area and a region that has had a massive resistance in the past so do not be surprised if it shows the same thing again. Because of this, I do believe that it is only a matter of time before sellers come back in, because quite frankly we would need to see something pretty impressive to break through the 1.20 level above.

EUR/USD Video 22.10.20

This does not mean that we cannot rally from here, nor does it mean that I am anticipating some type of major meltdown. What it does mean is that we are getting a bit stretched at this point and a pullback makes quite a bit of sense. The 1.17 level underneath would be an interesting support level to pay attention to, and clearly an area that the market has been interested in previously. Because of this, it makes a nice target for those looking to fade the oversold conditions.

As far as buying is concerned, it is probably a bit late to do that at this point, simply because of all of the obvious pressure on the Euro just above. With that in mind, if you are a short-term trader you may be looking for the pullback to profit from, otherwise you need some type of support of candle underneath the start going long again.

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