EUR/USD Price Forecast – Euro falls hard to kick off week

The Euro initially tried to rally during the trading session on Monday but rolled right back over to reach down towards the 1.11 handle. This is a market that continues to be in a downtrend and although we had a nice move on Friday, the reality is there is far too much uncertainty out there to continue to see a runaway from the greenback. The Euro has a lot of things to worry about right now, not the least of which will be the German economy heading towards a recession. If that is in fact going to be the case, it’s very likely that we will see the Euro struggle overall.

EUR USD Forecast Video 27.08.19

Just below at the 1.11 handle there is a significant amount of support that extends down to the 1.10 level, so I don’t necessarily think that it’s going to be the easy path lower. That being said though, it’s obvious that we have a lot of trouble when it comes to the global economy right now and that does typically favor the greenback in general. If that’s going to continue to be the case then it makes sense that this pair finally breaks down and through the vital 1.10 level. We are well below the 61.8% Fibonacci retracement level, and now more often than not you will see a move towards the 100% Fibonacci retracement level which is closer to the 105 EUR level. That doesn’t mean we get there right away, but I do think that we continue to fade rallies.

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