EUR/USD Price Forecast – Euro Finding A Bottom

The Euro continues to be very negative in general, but it does look as if it is ready to do somewhat of a technical bounce in general, as the 1.09 level has been a major support level in the past. Ultimately, the market looks as if it is trying to do a technical bounce if nothing else. The 1.09 level has attracted a lot of buying, and the first signs of dovish nest to come out of the Federal Reserve will certainly send this pair higher. At this point, the 1.10 level above should offer some resistance, but a quick technical bounce of that level is very possible. That being said, it is more or less likely to be a short-term bounce more than anything else, not necessarily some sudden change in the attitude of traders around the world.

EUR/USD Forecast Video 12.02.20

Ultimately, this is a market that does continue to favor the downside, but it has gotten a bit overextended. A bit of profit-taking would make quite a bit of sense, as the market has been so overextended. Ultimately, if the market does break down below the 1.0880 level, then it opens up the door to a much lower level. At that point, the market could find itself down to the 1.0750 level in order to fill the gap from longer-term trading that has been so prevalent on the chart. Eventually, gaps do tend to get filled so it makes sense that the market would eventually try to find its way down towards that area. However, in the short term we may get a little bit of a bounce so that you can sell from higher levels.

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