EUR/USD Price Forecast – Euro thrashes back and forth

The Euro went back and forth during the trading session on Tuesday, showing signs of confusion and trepidation as we are below the 1.09 level. At this point, the market looks as if it could bounce slightly, but quite frankly I think that will be a selling opportunity going forward as we have been in a downtrend for over 18 months, and every time the market rallies it looks as if the market is going to continue to show a significant amount of negativity as the European Union is likely to go into recession as opposed to the United States which is showing signs of economic strength still.

EUR/USD Forecast Video 02.10.19

Beyond that, the bond markets in the United States still offer a positive yield, while the European Union is chock-full of negative rates. That is not a good look for the currency markets, and they will continue to see sellers step in every time they get an opportunity to. Bounces should be thought of as offering value when it comes to the greenback, and therefore buying is all but impossible. The “ceiling” above is probably going to be found near the 1.10 level as it is a large, round, psychologically significant figure. A break above there would of course be interesting, but the market has seen sudden rallies recently, only to see the market breaking down. There’s nothing on this chart that suggests the attitude is going to change anytime soon and therefore the same playbook should be use, simply fading short-term rallies as they occur.

Please let us know what you think in the comments below