EUR/USD Price Forecast – Euro pulls back from 200 day EMAThe Euro pulled back a bit during the trading session on Thursday, as we had reached the 200 day EMA. However, I think there is support just below so it’ll be interesting to see how this currency pair plays out over the next couple of days.
The Euro pulled back a bit during the trading session on Thursday, as the 200 day EMA has offered resistance. However, I suspect that the 1.15 level underneath will offer support. Because of this, I anticipate that the next couple of days will be choppy as the currency markets are trying to figure out what to do with the Federal Reserve’s new outlook. Quite frankly, I don’t know that anything has changed other than the Federal Reserve has suggested that they are of course going to watch the markets. In other words, the central bankers have acquiesced to what Wall Street wants, something that seems to happen again and again. Remember, Federal Reserve policy has nothing to do with the economy, and everything to do with the bankers. With that in mind, I suspect that they will get the US dollar softer over the longer-term.
Euro to Dollar Forecast Video 11.01.19
I cannot give you a fundamental reason for this pair going higher, but I do think that the Federal Reserve is going to cut back on its interest rates for 2019, but as long as there is a lack of clarity, I think that the pair will continue to be choppy and that although we will probably try to break out to the upside, it’s not exactly going to be an explosion. If we break down below the 1.1450 level though, that could be negative and we could go back towards the lower bound of the “rounded bottom.”