EUR/USD Price Forecast – Euro fails to impress

The Euro went back and forth during the trading session on Monday as we continue to look a bit lost. The 1.11 level has the proclivity to show signs of strength, and therefore it’s likely that we continue to bounce around between now and the Federal Reserve announcement. The question isn’t so much as to whether or not the Federal Reserve cuts interest rates, but whether or not they remain dovish after that. Ultimately, I believe that the market not only has support at the 1.11 handle, but also at the 1.10 level after that.

EUR USD Forecast Video  30.07.19

To the upside, if we can get a dovish Federal Reserve, it’s likely that we will initially go looking towards the 1.12 handle. That’s an area that has been supported and resistance recently, so it would make sense to see a bit of arguing and jostling at that level. Whether or not we can make any moves from there is completely up in the air right now, but one thing that I can probably say with a little bit of certainty is that the Federal Reserve will be the most important catalyst to whichever direction we go. With that in mind it could very well be very quiet on both Monday and Tuesday, as we just don’t have any reason to get overly aggressive in one direction or the other.

At this point, I do believe that the 1.10 level underneath is going to be a bit of a “floor” in the market, but if for some reason the Federal Reserve did not cut interest rates, we could go through there in continue to grind even lower. I doubt that’s the case though, and at this point I think it’s really all about the press conference and statement.

Please let us know what you think in the comments below