EUR/USD Price Forecast – Euro Gives Up Early Gains

The Euro fell slightly at the open on Friday, but then turned around to rally to reach above the 1.0850 level before dropping right back down again. At this point, the market ended up forming a bit of a shooting star by midday. The market clearly is struggling but we are at the bottom of a larger consolidation area that has a top at the 1.10 level with a bottom down at the 1.0750 level underneath. At this point, we are closer to the bottom, so I am not necessarily looking to start selling this market down here.

EUR/USD Video 11.05.20

However, if the market was the break down below the 1.0750 level, then I could consider shorting this market as it would be breaking through that significant range. Underneath, the 1.0650 level would also be a target at that point, and then the 1.05 level after that. Ultimately, if we break above the top of the candlestick for the Friday session that I think we go looking towards the top of this range, and I will be looking to start selling the Euro closer to the 1.0950 level, as it is an area that I think is the beginning of significant resistance and what I see as a longer-term downtrend. Having said all of that, the Euro tends to be very choppy, and has been falling for years. Short-term rallies continue to offer selling opportunities in order to pick up the US dollar “on the cheap.” I have no interest in buying this market.