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.

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