The Euro went back and forth during the week, as the 1.12 level is massive support based upon the larger move. The 61.8% Fibonacci retracement level is right at this area, so it makes quite a bit of sense. Looking at the chart, the market has been bouncing around between the 1.12 level underneath and the 1.15 level above. While we are slumping in general, I believe this is where the Euro will make its stand. That being the case, I think that if you are patient enough you should recognize gains, but you should also recognize that a move below the 1.1150 level will open the door to a potential 1.10 print. The risk to reward ratio certainly favors a bounce, but as with all things forex nothing is guaranteed.
EUR USD Forecast Video 08.04.19
Looking at the chart, it’s not until we break above the 1.15 level that you have a longer-term “buy-and-hold” situation, and I think at this point we would also need to see a lot more risk appetite, into the marketplace so that the US dollar lost strength. The US dollar is overbought though, so I do believe that will happen given enough time.
Looking at the chart, I also recognize that the 1.10 level would be extraordinarily supportive due to the large, round, psychologically significant figure. I think at this point we are getting close to a bottom, but obviously it’s going to take a certain amount of wherewithal and patience.
Please let us know what you think in the comments below
