EUR/USD Price Forecast – Euro Shows SluggishnessThe Euro initially tried to rally during the trading session on Thursday but gave back the gains to break lower yet again. As the ECB keeps interest-rate at zero, they sound extraordinarily dovish.
The Euro has initially tried to rally during the trading session on Thursday but gave back the gains in order to break down below the 1.1075 handle and reach even further. That being said, this is a market that looks like it’s trying to rollover, but I would not expect any type of meltdown. Quite frankly, this pair has been very difficult to trade for months, and therefore the best that you can probably do is look for shorting opportunities on a short-term chart. This isn’t to say that we are going to break down significantly, because there is massive support down at the 1.10 level.
EURUSD analysis Video 24.01.20
The fact that we are below the 50 day EMA does have me tilting towards the downside, but big moves are not to be anticipated anytime soon. In fact, while the ECB is extending its accommodative policy, the Federal Reserve is continuing to add to its balance sheet. Ultimately, this market looks as if it’s simply wants to go back and forth between the 1.10 level on the bottom and the 1.12 level on the top. With this being the case, the market looks very likely to continue seeing choppy behavior, so it’s very likely that we will continue to see difficulties going forward.
The one thing that I find interesting about the price action over the last couple of days is that we have broken through the bottom of the hammer that formed on Wednesday, showing a breach of minor support. That is yet another reason why it looks likely that we may have a pullback coming in the short term.
Please let us know what you think in the comments below