EUR/USD Price Forecast – Euro Testing Major Round Figure

The Euro initially pulled back during the trading session and then shot above the 1.18 handle slightly, testing through a major uptrend line. This has been the uptrend line that has been crucial for quite some time, and therefore I think it is only a matter of time before we see some type of selling come back into the scenario. Above this area, I believe that the 1.1860 level should also offer resistance as there is a lot of supply in that area. After all, we still have a lot of noise when it comes to the Brexit situation so therefore the market is likely to punish both of these participants, the Euro and the Pound until things settle down.

EUR/USD Video 07.10.20

Furthermore, the US dollar will continue to be looked at as a “safety currency”, so it is possible that the market could sell off yet again. Quite frankly, all we need is some type of negativity to get the market rolling over and reaching towards the 1.17 level underneath. If we break down below that level, then it opens up a very real possible move to the 1.16 handle. On the other hand, we could continue to go higher but I think there is a lot of noise out there that will cause serious issues. Because of this, the market will continue to be very choppy, but I do think that it is likely that we see sellers sooner rather than later. In fact, it is very difficult to see how this market breaks out with some type of major catalyst. If we do break above the 1.20 level, then it is possible that we could continue the uptrend, but right now we have a lot of work to do.

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