EUR/USD Price Forecast – Euro Extend Yet Again

The Euro has rallied significantly during the trading session on Monday, reaching above the 1.1150 level. However, the market has given back a bit of those gains as it had gotten far too ahead of itself and is in the middle of a noisy area. We poked above the 200 day EMA so that of course causes a significant amount of resistance as well.

At this point, the market is likely to pull back and go lower, perhaps reaching down towards the 1.10 level given enough time. Having said that, traders are still placing a high priority on the Federal Reserve cutting interest rates, so it is possible that the US dollar continues to lose a little bit of strength, but at this point we are far overdone so I would look at some type of pullback coming rather soon. If we break down below the 1.10 level, then the market could fall right back down on its face.

EUR/USD Video 03.03.20

However, the market was to close above the 1.12 level, you could start to think about the idea of a major trend change. I don’t know that we have that quite yet, and I think this is more or less traders trying to figure out what to do with their money. This has been a complete mess as you can see this is overextended and just about any metric you measure it, but you can also say the same thing about the selling going into this move. Because of this, it’s obvious that the markets are very dangerous.