EUR/USD Price Forecast – Euro Kicks Off the Week to the Upside

The Euro rallied significantly during the trading session on Monday, reaching towards the 1.18 level. This of course is a large, round, psychologically significant figure, and should be paid attention to for that reason. Furthermore, the uptrend line above should offer resistance, while the 1.17 level underneath offers plenty of support. At this point, the market looks very likely to continue chopping around and going sideways in general.

EUR/USD Video 20.10.20

The 50 day EMA is sitting underneath, sitting just above the 1.17 handle, so that of course is something that people will pay attention to. If we can break above the uptrend line that we had broken through, then we could go looking towards the 1.1850 level, and then the 1.19 level. There is a ton of resistance above, so I think that any rally at this point is probably going to be sold into. Having said that, we have recently made what could be thought of as a “higher low”, but I think it is up bit premature to call it that yet. After all, there are a lot of concerns out there that could drive money into the US dollar, so it is most certainly worth keeping that in the back of their mind. If we do break down below the 1.17 handle, then we could go down to the 1.16 level, and then possibly down to the 1.15 handle after that.

This pair is somewhat sensitive to risk appetite, so if something ugly happens, it will certainly sell this market. Furthermore, the European Union has to worry about the possibility of lockdowns and a continuation of plenty of new coronavirus infections that are rapidly increasing.

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