EUR/USD Price Forecast – Euro Gets Crushed

The Euro has fallen hard during the trading session on Wednesday, reaching below the 50 day EMA rather quickly. There are a lot of fears about economic lockdowns, especially on the continent. With that being the case, it does make sense that the Euro would get hammered a bit as there is even talk about France announcing a lock down later during the day. If that is going to be the case, that is the second largest economy in that zone essentially going off-line. This will almost certainly crush the Euro from a short-term perspective.

EUR/USD Video 29.10.20

Furthermore, the idea of stimulus is essentially dead for a couple of months in the United States, so that means that the US dollar will probably strengthen anyway. With that being the case, it does make quite a bit of sense that we would see this pair fall. If we can break down below the 1.17 level, then it is likely that the 1.16 level will be threatened. After there, we will probably go looking towards the 1.15 handle which is where the 200 day EMA currently sits. It is very likely that we will have a huge fight on our hands in that general vicinity if we get there, so it is most certainly worth paying close attention to.

All of this being said though, this is probably a market that you are looking for short-term rallies to fade at the first signs of exhaustion as this pair does tend to be rather choppy and difficult to hang onto because of the lack of momentum at times. The Euro got far ahead of itself, and now we are starting to see just how true that is.

For a look at all of today’s economic events, check out our economic calendar.