EUR/USD Price Forecast – Euro Struggling for Clarity

The Euro has gone back and forth during the trading session on Monday, as we continue to see a lot of uncertainty when it comes to multiple fronts, as people have no idea what to do about stimulus, economic growth, the election, Brexit, and a whole host of other issues. Ultimately, I think that this is a market that will continue to be very choppy and noisy, but quite frankly this is a market that does that most of the time. In other words, choppy and noisy behavior is the norm, not the exception.

EUR/USD Video 13.10.20

The candlestick for the day shows a lot of confusion, so I think at this point it is probably difficult to imagine that this market shoot straight up in the air. The 1.1850 level should be resistance based upon the recent supply, but underneath we should have some support. In the short term I would anticipate more back-and-forth action shipment, perhaps with more of a sideways tilt more than anything else. With that in mind, this is a short-term trader event, because we do not have clarity for a longer-term trend quite yet.

Yes, we have risen quite significantly in the Euro against the dollar, but we still have the 1.20 level above that needs to be broken to confirm a longer-term cyclical move higher. To the downside, if we were to break down below the 1.17 level it opens up the possibility of a move down to the 1.16 level, which is where we had recently bounced from. At this point, the question for the technical analysis is whether or not the retest of the previous uptrend line is simply that, or are we going to slice of that line like it does it even matter? I anticipate that whatever it is will be driven by some sudden news event. It is because of this that you cannot put huge positions on.

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