EUR/USD Price Forecast – Euro trying to bounce from Lows

The Euro has initially pulled back during the trading session on Thursday but has bounced a bit as the Americans came on board. At this point, it’s not necessarily something that you can jump into, but it is something that you should be looking at as an opportunity to sell on signs of exhaustion. The 50 day EMA is above and tilting lower. It is the previous resistance, and it’s likely that it will be again going forward. The resistance is just as reliable as the short-term support has been, but I do think that longer-term this pair does eventually break down.

EURUSD analysis Video 27.09.19

To the downside, if we were to break down below the 1.09 EUR level, the market is likely to continue to try to grind down towards the 100% Fibonacci retracement level, which of course is closer to the 1.0450 EUR level below. That doesn’t mean that we get there anytime soon, but the fact that we are below the 61.8% Fibonacci retracement level does suggest that we will eventually try to work our way down there. Obviously, there will be plenty of opportunities to fade the rallies going forward, and you will probably have to look to short-term charts in order to find those opportunities, but currently it looks as if the 1.10 EUR level is essentially the “fair value” level.

If we were to break above the 50 day EMA which is pictured in red would more than likely be something worth paying attention to, but quite frankly the 1.12 EUR level above is resistance as well and will be a hard “ceiling” in the market.

Please let us know what you think in the comments below