EUR/USD Price Forecast – Euro falls to start the week

The Euro fell during the trading session on Monday to start out the week, reaching down towards the 1.15 level. I believe this is an area that will attract a lot of attention, not only from a structural standpoint, but also from a psychological standpoint. With that in mind, I’m waiting for some type of bounce or supportive candle to start going long, because quite frankly the risk to reward ratio is quite attractive. A bounce to the 1.16 level is feasible, especially if we get more of a “risk on” type of market.

If we do break down below the 1.15 level significantly, then I think the market could unwind quite nastily. At that point, I think the market probably goes looking towards the 1.13 level underneath, which would be the signs that we could be entering yet another phase of bearish momentum.

If we turn around to rally from here though, I think that we will possibly go looking towards the 1.18 level longer-term. I think the next couple of weeks could be very choppy and sideways, but once traders come back towards the end of the month from their vacations, it’s likely that we will see a bit more in the way of certainty when it comes to these moves. I think we are reaching a structurally important level, and I think that longer-term traders are going to be looking in this area for value, but that doesn’t being that is going to be easy to deal with in the short term. Longer-term I would anticipate buyers go back into the market, but also you need to keep an open mind to all possibilities.

EUR USD Forecast Video 07.08.18