EUR/USD Price Forecast – Euro Testing Major Support

The Euro initially tried to rally but the 50 day EMA offered enough resistance to send the market lower. By doing so, the market then turned around to slam into the 1.17 level, an area that previously had been significant support. The fact that we broke down towards that area so quickly suggests that the Euro is in a certain amount of trouble, and that it will probably continue to go lower, perhaps reaching down towards the 1.16 level underneath. That was the most recent support level that we had bounced from, but it certainly looks as if we have a lot of concerns out there.

EUR/USD Video 30.10.20

Europe is now starting to lock its economy down, effectively throwing itself into a self-induced recession. If that is going to be the case, then the Euro is getting way too expensive. I anticipate that rallies are to be sold into going forward, and that it is only a matter of time before this market breaks down rather significantly. Beyond that, there is more of a “risk off” type of attitude to the markets right now, so it certainly makes sense that the greenback would continue to attract a certain amount of attention as it is the currency needed to buy treasury bonds in the United States.

I do not have any interest in trying to buy the Euro right now, and I do think that we go much lower. Quite frankly, this has been a textbook trendline breaks set up from a technical analysis standpoint, so ultimately, I do think that we go much lower. I am looking to fade short-term rallies as they occur as well.

For a look at all of today’s economic events, check out our economic calendar.