EUR/USD Price Forecast – Euro falls to reach major support level

The Euro has fallen during the trading session on Tuesday, reaching towards the 1.15 level underneath. This is the bottom of the larger consolidation area, so it isn’t much of a surprise that we found buyers in that region. When we reach these areas, typically we have a lot of consolidation so I think that short-term pullbacks should be buying opportunities now, with the 1.1480 level being the bottom of the “support zone.” This is a major area of previous resistance on the weekly charts, so I think that it should hold and therefore I have become bullish of this pair again. That doesn’t mean that it’s a guaranteed, just that the odds certainly favor that buyers will come in to pick up the Euro “on the cheap.”

That being said, expect the occasional pullback so look at those as potential buying opportunities. Longer-term, I anticipate that we will in fact turn around and try to go to the 1.18 level, even though we know that the interest rate differential favors the United States. As there is more of a “risk on” attitude around the world, the Euro should be the beneficiary in this scenario. I think it would take something pretty negative to send the market down below the 1.14 handle, so that would completely change all of my technical analysis if it were to happen. I don’t expect it, so I’m more than willing to start buying.

EUR/USD Forecast Video 03.10.18