EUR/USD Price Forecast – Euro Pulls Back From Fair Value

The Euro has broken down significantly during the trading session on Monday, kicking off a week on a bearish tone. At this point, the market is likely to continue to go looking towards 1.10 level, as the 1.10 level is the bottom of the overall range, just as the 1.12 level is the top. This makes the 1.11 level as essentially “fair value”, meaning that the market seems to hang around in that area. Ultimately, the market is still in a downtrend, and there are a lot of concerns about global growth right now. That of course will continue to favor the US dollar in a bid for safety, especially as the European Union economic numbers continue to disappoint.

EUR USD Forecast Video 04.02.20

With this being said, the 1.10 level has held steadfast for quite some time, so don’t be surprised if there is a bounce from there. With this, money continues to flow into the United States and away from the European Union as bond yields started to drop during the trading session as well. At this point, the market looks as if it is going to continue the overall consolidation that we have seen over the last several months, thereby potentially setting up a short-term buying opportunity closer to the 1.10 level.

Ultimately, you must assume that the range is going to hold until it doesn’t. I know that’s a bit terse, but at the end of the day it’s one of the few things that you can take to the bank when it comes to trading.

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