EUR/USD Price Forecast – Euro Falls Waiting For Federal Reserve

The Euro broke down below the 1.10 level during trading on Wednesday, as the market awaits the FOMC, which of course will cause a lot of noise in this market. That being said, we are broken down below the bottom of the hammer from the previous session which in and of itself isn’t a very good sign for the Euro in general. Ultimately, this is a market that has a significant amount of support down to the 1.0980 level, so we are most certainly pressing the issue here. If we were to break down below that level it’s likely that the market goes down to the 1.09 handle, and then possibly even as low as the 1.0750 level where I see a gap from a long time ago.

Euro to Dollar Forecast Video 30.01.20

That being said, if the Federal Reserve chooses to sound remotely dovish, it’s very likely that the market will turn around and recover quite nicely. We have been trading between the 1.10 level on the bottom and the 1.12 level on the top for quite a while, so we are most certainly pressing extraordinarily strong support in this general vicinity. With that, the market certainly favors the upside but if the Federal Reserve doesn’t sound dovish enough, that might be reason to see the US dollar continue to go higher in strength, pushing this pair down. One thing is for sure, over the next couple of days we should get some answers for a bigger move.

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