EUR/USD Price Forecast – Euro Continues To SlideThe Euro initially tried to bounce a bit during the trading session on Monday as traders came back to work, but it appears that we are going to continue to see a lot of negativity when it comes to the Euro.
The Euro has initially tried to rally during the Monday session but turned around to show signs of exhaustion again. By doing so, it looks very likely that the market should continue to slide from here, reaching towards the 1.09 level. The Euro suffers from poor economic fundamentals, and of course the fact that the US dollar is by de facto the strongest currency as there are a lot of concerns around the world when it comes to the growth, and of course the coronavirus.
EUR USD Forecast Video 11.02.20
As the fundamentals continue to favor the United States, it makes quite a bit of sense that the US dollar strengthens against the Euro, as Europe is a bit of a basket case. Quite frankly, the economic numbers for Europe suggest that the area can’t get out of its own way. Furthermore, the Euro has a central bank that is on the path of quantitative easing, while the Federal Reserve is still “data dependent.” Money continues to flow into the US stock markets in general, so that of course does wonders for the US dollar as people look for safety and growth. The United States is essentially the only place we are seeing growth, so it should continue to favor the greenback strengthening overall.
As a side note, we are also seeing US dollar strength when it comes to the commodity markets, so this is a worldwide phenomenon as the demand for dollars increases. I have no interest whatsoever in trying to buy this pair, and look at every rally as a potential selling opportunity down to at least the 1.09 level, followed by the 1.08 level and then eventually the 1.0750 level which is the scene of a gap that has yet to be filled.
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