EUR/USD Price Forecast – Euro Indecisive

The Euro went back and forth during the trading session on Friday, as we continue to see a lot of movement in a sideways manner. The market is struggling with the idea of the 1.12 level above, and the 200 day EMA above there. Ultimately, I think the market continues to chop around quite drastically, and as a result short-term traders will probably continue to use range bound type of systems. I do believe that the downtrend is still very much intact though, because we have seen moves like this more than once over the last three years.

EUR/USD Video 04.11.19

Having said that, if we were to finally break significantly above the 200 day EMA and on a candle that closes towards the high of the range of the day, then you can start to make an argument of possibly seeing a trend change. It’s difficult to imagine that though, because the European Central Bank is about to jump into extreme liquidity measures, and although the Federal Reserve has just cut interest rates, they look to be pausing as far as all of that is concerned. In other words, the US dollar should continue to strengthen a bid against the Euro but I’m not looking for any type of meltdown. I simply believe that we are going to continue what we have seen over the last almost 3 years, a choppy but overall negative market. Rallies are to be faded unless we get that break out, and to the downside I think the 1.1075 level makes the most sense as an initial target as it has offered so much support over the last couple of days.

Please let us know what you think in the comments below