EUR/USD Price Forecast – Euro Continues to Grind Lower

The Euro initially tried to rally during the trading session on Wednesday but gave back quite a bit of the gains to form a rather negative candlestick. It currently looks as if the 1.12 level should offer support though, so if we were to break down below there then I think it opens up the door down to the 1.1050 level, which also features the 200 day EMA in that same area. Ultimately, I do think that the Euro has gotten a bit over bought, which of course is a condition that we have found ourselves and more than once.

EUR/USD Video 18.06.20

Looking at this chart, if we were to break down, I think there is a lot of support underneath and it would simply be a return to the average range that we have been in. Quite frankly, the Euro does not necessarily trade very easily, nor does it trade in a smooth manner. Because of this, it is not overly surprising to see this market go back and forth from the 1.15 level at the top, and the 1.07 level at the bottom.

Ultimately, we had gotten a bit too far ahead of ourselves to continue going higher. In other words, this could be a bit of a “reversion to the mean” type of trade, so keep that in mind. The Euro has to deal with the European Union, which of course is a longer-term mass. If we do rally from here, then I think we will see quite a bit of selling near the 1.14 handle, so I would be willing to short the market there as well.

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