EUR/USD Price Forecast – Euro Falls Right Into Major Support

The Euro has fallen a bit during the trading session on Tuesday, reaching towards the crucial 1.10 level, an area that has offered significant support more than once. Because of this, and the fact that it is a large, round, psychologically significant figure, it makes quite a bit of sense that the market participants will look at this as a potential area to start buying again. Quite frankly though, there is the FOMC Monetary Policy statement coming out during the day on Wednesday that people will be paying the most attention to. If the market breaks down below the 1.0980 level, it’s very possible that the market could drop even further. At this point, the pair has fallen extraordinarily quick, and therefore the question is whether or not it can simply break down through that support.

EUR/USD Forecast Video 29.01.20

If we do bounce, it’s very unlikely that we break above the 1.11 handle very easily. The market has been bouncing between the 1.10 level and the 1.12 level above, and the 1.11 level will essentially be “fair value.” At this point, it makes it very likely that will continue to be a bit of a magnet. However, with the wildcard of the FOMC Statement coming out, anything can happen. At this point, it will be very noisy and choppy, but it certainly looks as if we are in an area where value hunters may come back in and try to pick up “cheap Euros.” On the other hand, if we break down below that 1.0980 level, that opens up the trapdoor to much lower levels.

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