EUR/USD Price Forecast – Euro PlungesThe Euro broke down significantly during the trading session on Wednesday, slicing through the 1.10 level and then breaking through the bottom of the hammer that had formed on Tuesday. That being said, it does look like we are struggling to break down below the 1.09 level so I think we are going to continue to see a lot of choppy behavior.
The Euro has broken down significantly during the trading session on Wednesday, breaking through the 1.10 level and then breaking through the bottom of the candlestick from the previous session. That of course is a very negative sign, but I think we are probably going to see a lot of back and forth in this general vicinity due to the fact that the job summer comes out on Friday. However, I do believe that the 1.10 region above will probably offer resistance, so if we were to break above there it could be a reasonable sign, but all things being equal it’s likely that the market will continue to look at that as an area that will be crucial.
EUR/USD Video 02.04.20
To the other extreme, if we can break below the 1.09 level it’s very likely that the market will go looking towards the 1.07 handle over the longer term. I do believe that eventually happens, but we will have to wait and see because there is a world of hurt out there when it comes to the European Union. With that being the case, I do prefer shorting on short-term charts, as it looks like we are rolling over yet again in a market that had recently been in a an extremely negative trend. All things being equal I believe that the Euro is going to continue to struggle in general, and therefore I like selling.