EUR/USD Price Forecast – Euro Pulls Back Slightly

The Euro pulled back a bit during the trading session on Monday, as we continue to see the market grind away in an uptrend and channel. That being said, the market is likely to continue going higher given enough time, especially as we have formed a couple of hammers on the daily chart previously. If this holds, then it will show the validity of the overall trend, as there will have been multiple attempts to break down below the uptrend line, all of which have failed. With that being said, if we can break above the highs of the last couple of trading sessions, that would obviously be very bullish for the Euro in general.

EUR/USD Video 08.09.20

A lot of this comes down to the Federal Reserve going everything they can to loosen monetary policy, and therefore this should continue to put a bit of pressure on the greenback in general. Furthermore, the Euro seems to be benefiting from a slightly increasing economic picture for the European Union, and of course simple momentum which makes quite a bit of sense based upon what we have seen on the chart.

That being said, the 1.20 level above should continue to offer significant resistance, as it is a large, round, psychologically significant figure, and of course it is an area where we have seen a lot of interest in the past. Because of this, you should pay quite a bit of attention to that area because if we break above there, the market is likely to go much higher. On the other hand, if we break down below the uptrend line, it is likely that we go looking towards 1.17 level.

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