EUR/USD Price Forecast – Euro finding support after break down

The Euro try to break down during the trading session on Friday, after comments by an ECB member. However, it has shown a resilient attitude, as we have turned right back around to show signs of life.
Christopher Lewis
EUR/USD daily chart, February 18, 2019

Machines sold off the Euro after comments from an ECB member suggesting that perhaps the slowdown in the European Union was quicker than anticipated. After the humans to back over though, they started to pick up a bit of value in the Euro, as it is so often with machine trading. Looking at the candlestick, it looks as if there is plenty of support below as I had anticipated, with the 61.8% Fibonacci retracement level at the 1.12 level of course offering a bit of a highlight.

EURUSD analysis Video 18.02.19

Remember that the Federal Reserve is very soft in general, so that should keep this pair somewhat buoyant, even though there are a lot of concerns in the European Union at the moment with Italy heading into a technical recession and Germany narrowly avoiding it. That being said though, the ZAR known factors, and the Euro is at historically low figures. With that situation, it’s going to be difficult to see a lot of mass selling at this point. Ultimately, I believe that this market will bounce back and try to reach into the previous consolidation area, extending all the way to the 1.15 handle.

This will course be choppy and noisy but that’s typical with this pair as it is traded by so many robots. Beyond that, you have a couple of central banks that are both looking very soft so it’s essentially a fight between two lightweights. However, if the European Union numbers become a little bit stronger, that’s probably all it takes to send this market much higher.

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