EUR/USD Price Forecast – Euro falls yet finds supportThe Euro initially fell during the trading session on Monday, breaking down significantly but did find buyers later on that turn things around of form a bit of a hammer. We are currently dancing around the 200 day EMA, and that of course is a sign that larger money may be coming into play.
The Euro initially fell during trading on Monday to kick off the week but found enough support underneath to turn around and form a bit of a hammer by the time the Americans got to work. The 200 day EMA is an area that will attract a lot of large monies so it’s definitely worth paying attention to. We had previously had three days in a row that were very neutral right around the 200 day EMA and then Monday broke down significantly right away. If we can recover the losses from Monday, that would be a very bullish sign as it could give you an idea as to where the market won’t go, which is valuable information.
EUR USD Forecast Video 02.07.19
On the other hand, if we were to break down below the bottom of the candle stick we could go looking towards the 50 day EMA which is pictured in red on the chart. That will still be a “higher low”, so we could be looking at an opportunity for the market trying to form a “bottoming pattern.” I think this makes sense because the Federal Reserve is looking to cut and just about everybody out there is betting on it. After all, Wall Street gets what it wants out of the Federal Reserve given enough time. That doesn’t mean that it’s going to be easy to go higher, but I do think that we will continue to see a bit of a grind to the upside as we reach towards 1.15 above.
Please let us know what you think in the comments below