EUR/USD Price Forecast – Euro Dances Around Same Big Figure

The Euro has gone back and forth during the trading session on Wednesday, as we await some type of clarity when it comes to the US presidential elections. It looks as if the Republicans are going to hold onto the US Senate, so that of course does help the idea of having a little bit of certainty, as a split government is actually a very bullish thing because it keeps taxes somewhat under control in America. Having said that, as soon as we are done with this elect oral nonsense, then we have other things to start paying attention to, namely the European Union itself.

EUR/USD Video 05.11.20

The Euro has the unfortunate set of circumstances behind it suggesting that it should go lower due to the fact that the European Union is essentially shutting itself down. If that is going to be the case, then the only other thing that people will be focusing on will be the ECB next month, and what is going to do about fiscal stimulus and the like. It certainly looks as if it is going to do something rather drastic, and that will probably weigh upon the Euro as well.

That being said, I am not looking for some type of meltdown, but I do think that a move down towards the 1.15 level would make quite a bit of sense considering that it is the 38.2% Fibonacci retracement level and the 200 day EMA.

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