EUR/USD Price Forecast – Euro traders looking for a bottom

The Euro bounce quite a bit during trading on Friday, perhaps in a bid to do a bit short covering over the weekend, or perhaps just from a technical standpoint as the 1.15 level shows support all the way down to the 1.1450 level underneath. While it is still early to call this, we could be forming a bit of a “double bottom”, but I think that it will be difficult to feel as comfortable down here as one should. However, those are quite often the best trades, buying one nobody else is willing to. Nonetheless, it’s not until we break back above the 1.15 level that I would feel a bit better.

If we do break down below the potential double bottom, that would be a very negative sign, and that could send this market much lower. At that point, I think it would open the door to the 1.1350 level, an area that had been somewhat supportive in the past. In general, I think that the market will try to find buyers down here but with so much drama going on with the Italian debt situation, and of course higher interest rates in the United States, it’s going to be very sluggish in this pair to say the least. At this point, I believe that the market will continue to be very noisy but this seems to be an area where a lot of value hunters are willing to step in and pick up the common currency. All things being equal, I think that you need to look at this more or less from a longer-term standpoint and of value-based proposition.

EUR/USD Video 22.10.18