EUR/USD Price Forecast – Euro Falls From Trendline

The Euro has pulled back a bit during the trading session on Tuesday, reaching down towards the 1.1750 level by the time the New York session got started. That being said, I believe that the market is going to continue to see a lot of noise, and therefore we will continue to worry about the European economy which of course is starting to struggle. Ultimately, we are also paying attention to fiscal stimulus coming out the United States, so obviously that will have a lot of back and forth in this pair. That being said, the technical analysis suggests that we have possibly topped.

EUR/USD Video 14.10.20

At this point, the 50 day EMA underneath could offer a bit of support, just as the 1.17 level would be. Underneath there, then we could be looking at a move towards the 1.16 level. The 1.16 level was an area where we have seen a significant bounce, and therefore I think that will be the target. Given enough time, the market should get down to that area, especially if we get more of a “risk off” type of scenario.

Ultimately, this is a market that I think is going to focus on the significant risks around the world, so with that being the current scenario that we are in, it would make sense that we see a run towards the US dollar in general. I think it is very likely that we continue to see a lot of “fading the rally” type of behavior here, so therefore short-term charts should continue to offer selling opportunities.

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