EUR/USD Price Forecast – Euro Rallies After ECB Press Conference

The Euro rallied rather significantly during the trading session on Thursday during the ECB press conference, reaching towards the 1.19 level. Ultimately, this is a market that continues to see a lot of noise in general, as we had perhaps rallied far too much in too short of a timeframe for the rally to continue with gusto. At this point, signs of exhaustion will more than likely be sold into, as the 1.20 level above looks to be massive resistance. That being said, Christine Largarde had very little to say about the exchange rate, and certainly gave the impression that the European Central Bank is not looking to manipulate it. If that is the case, that might be the final “go-ahead” that some traders are looking for in order to go long and push this market higher.

EUR/USD Video 11.09.20

This is not to say that breaking above the 1.20 level will be easy, just that it may be a bit more feasible. I would not be a buyer here; we clearly need to break above the shooting star from last week in order to show enough strength to continue the move above the 1.20 level. Signs of exhaustion will probably be faded, but I think the overall outlook for this pair is choppy behavior that goes back and forth in difficult and noisy trading. Adding the fact that the Brexit situation is still a complete mess, that will also come back into focus from time to time as well. Short-term trading in a range bound system probably continues to be the way we behave.

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