EUR/USD Price Forecast – Euro Pulls Back From Trendline

The Euro pulled back a bit during the trading session on Thursday, after testing the previous uptrend line and therefore finding a bit of “market memory” coming into play. Now that we have pulled back from there, the market is likely to go looking towards lower levels but I also recognize that the most recent low was higher than the one before it, just as this hi is higher than the one before it as well. Because of this, it looks like we are trying to change the trend to the upside again, but there is a massive amount of resistance extending from the 1.19 level to the 1.20 level above. I think that level of resistance is going to take a lot of work to get through.

EUR/USD Video 23.10.20

If we break down below the 1.18 handle, then it is very likely that we go looking towards the 50 day EMA which is sitting just above the 1.17 level. Traders around the world are waiting to see whether or not the Americans will release massive stimulus into the markets, which in theory should have the US dollar selling off. However, if they do not this pair will collapse. The main reason I say this is that the economic numbers coming out of the European Union are dire at best, so therefore one would assume that the ECB is probably going to fall right in line with the Federal Reserve and the US Congress.

With this being said, I am looking at a market that is very likely going to be sideways between 1.20 on the top and the 1.17 level on the bottom in the short term.

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