EUR/USD Price Forecast – Euro Looks Likely To Break Down

The Euro initially tried to rally during the trading session on Thursday but has shown enough resistance above the 1.10 level to roll over and show signs of exhaustion. By doing so, it looks as if the market is likely to go looking towards the 1.09 level, and then possibly even lower than that. Alternately, if the market turns around and breaks above the top of the range posted during the trading session on Thursday, then it would be a very bullish sign. That being said though, this is a market that has also a significant amount of noise in both directions, but it is clear that the US dollar continues to be favored by currency traders around the world as the markets preferred the stronger GDP of the United States and of course the jobs situation.

EURUSD analysis Video 07.02.20

Furthermore, the European Union is still bickering with the United Kingdom about the breakup, and therefore it’s likely that the European currencies will suffer at the hands of the greenback, thereby causing the next leg lower, perhaps down to the 1.09 level given enough time. All things being equal, it’s likely that the market will continue to see the occasional bounce, but the downtrend seems to be very much intact, with the European Union showing less than bullish attitude when it comes to economic figures so therefore it’s no surprise that we continue to see this pressure. The longer-term charts feature a gap at the 1.0750 level, so that could be the longer-term destination.

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