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

The Euro started off the week on its back foot, as the EU has rejected the Italian budget. This of course is a bit negative for the Euro itself, and of course there are many other reasons to think that perhaps we may continue to slide as there are a lot of “risk off” event out there just waiting to spook the market.

However, we are reaching towards very important structural support, so we could see a bit of resiliency in the common currency. I think at this point, it’s very likely that the market participants will be very skittish about owning the Euro, and it should continue to bring in a “sell the rallies” type of mentality over the short term. If we do break above the 1.15 level above, that’s a bullish sign for sure, but there’s also a lot of noise all the way to the 1.1550 level after that. Market participants continue to be concerned about the Italian budgetary situation, and as long as that is a problem it’s likely that we will see the Euro struggle. Beyond that, the trade war and sanctions around the world continue to have people concerned as well, so I think this market, although I don’t think it’s extraordinarily bearish, will struggle to be very bullish. Selling the rallies going forward should continue to be the best way going forward, but once we break above the 1.1550 level, I think the buyers will start to overwhelm again.

EUR USD Forecast Video 09.10.18