EUR/USD Price Forecast – Euro Pulls Back From Highs

The Euro has pulled back a bit during the trading session on Tuesday to give back some of the gains on Monday. At this point, the market is likely to continue to be choppy and volatile, as we try to figure out what is going to happen in the United States. Donald Trump is expected to give an announcement later in the day on Tuesday to address fiscal stimulus, so that of course will have its effect. The 1.15 level above continues to be very resistive, and clearly is a barrier that will take a lot to get through. However, if we were to turn around a break above the 1.15 handle, it’s likely that the market can continue to go higher. Alternately, if we pull back from here then we will more than likely go looking to fill the gap underneath from the Monday opening.

EUR/USD Video 11.03.20

That gets us relatively close to the 1.1250 level, which is an area that has been important in the past. If the market were to break down below that level, then it will be interesting to see what happens at the 200 day EMA. All things being equal though, this is a market that will continue to go back and forth between 1.1250 on the bottom and the 1.15 level on the top. If we can break above the 1.15 handle, then it’s likely that the market goes looking for the next 250 pips. That being said, as is the case with many other currency pairs right now, you should keep your position size relatively small.