EUR/USD Price Forecast – Euro softens ahead of FOMC

The Euro fell towards the 1.1725 region ahead of the FOMC statement, which isn’t much of a surprise, and unfortunately you can’t read too much into, as a lot of traders would have chosen to be on the sidelines heading into that announcement. Long gone are the days of news trading, especially on the retail side as it has proven itself to be almost impossible competing against the computers. However, longer-term decisions could be made after this announcement, and I think it will show itself in the form of whether we are above the 1.18 level are not at the end of the session. If we are, then I think the market breaks out and reaches towards the 1.20 level above.

If we were to break down below the 1.17 handle, then I think will probably go to the 1.16 level, and then eventually the 1.15 level after that. Expect a lot of volatility, but I do think that over the longer-term we are probably looking towards a breakout given enough time. That doesn’t mean that is going to be easy, and there is also the possibility that we stay within the longer-term consolidation area, but we have seen so much in the way of bullish pressure as of late that I think eventually the breakout is a foregone conclusion. That could send this market towards the 1.0 level next, which is an area that has been important in the past.

Euro to Dollar Forecast Video 27.09.18