EUR/USD Price Forecast – Euro reaches towards resistance again

The EUR/USD pair has rallied again during the trading session on Wednesday, as the 1.10 level continues offer significant resistance. There is also a downtrend line that should be paid attention to as well, so there are couple of different reasons to think that this market may fail.
Christopher Lewis
EUR/USD daily chart, October 10, 2019

The Euro has rallied a bit during the trading session on Wednesday, reaching towards the 1.10 level, which of course has a significant amount of psychological importance attached to it, and of course was the scene of a major break down previously. Ultimately, this is a market that is in a downtrend and that’s probably the most important thing to pay attention to here. If the market were to break above the downtrend line and perhaps even the 50 day EMA, then you can start to talk about the idea of going higher. All things been equal though, this is a market that is likely to sell off every time it tries to rally. With this, it’s likely that we will simply see more of the same.

Euro to Dollar Forecast Video 10.10.19

To the downside, the 1.09 level underneath should be a target to say the least, and if we can break down below that target, then the longer-term downtrend will continue to hold the market under its thumb, perhaps reaching down towards the gap underneath at the 1.0750 level that has a major gap around it. Ultimately, market participants will continue to favor the US dollar due to not only the overall trend but the recession that seems to be coming the way of the European Union. Ultimately, the United States is still growing while the European Union isn’t. Beyond that, negative yields in the bond market in the EU will continue to work against any type of Euro strength.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US