EUR/USD Price Forecast – Euro Continues To Show Weakness

The Euro has initially tried to rally during the trading session on Wednesday but continues to struggle on rallies. Quite frankly, the Euro is oversold in the short term so I would not be a seller down at this point. We have just filled a bit of a gap, so that of course is an area to pay attention to. At this point, the market should continue to see sellers above, so I think that the best trade to take is simply wait for signs of exhaustion on a daily chart to sell into. I think you are going to need to be extraordinarily patient in this currency pair, as it has collapsed over the last couple of weeks. Quite frankly, most of the time trading this market is like watching paint dry, so the fact that we have dropped a couple of handles in a very short amount of time tells you that the market is going to be exhausted.

EUR/USD Video 20.02.20

To the downside, I do believe that the market will eventually break down through the gap that it is currently filling, to reach towards the 1.05 level underneath. To the upside, the market should find sellers near the 1.09 level, and then eventually the 1.10 level after that. I will be making my decision based upon a daily close, so what I would hope to see is some type of shooting star near the 1.09 level or the 1.10 level above there. Selling the market right now is simply chasing the trade, which is an excellent way to lose a lot of money.