EUR/USD Price Forecast – Euro Stalls

The Euro has pulled back a bit during the trading session on Wednesday as the market had expended so much energy the previous session. This is typical, and now the market will probably go looking towards the 1.19 level to see if it will hold as support. Even if it does not, I think there are plenty of areas underneath that could come into play and send this market higher. With that, I believe ultimately this is a market that is going to go looking towards 1.20 level, but it looks as if the markets are trying to determine whether or not there will be enough momentum to continue going higher.

EUR/USD Video 20.08.20

With all of that being said I believe that the market is going to try and find some type of reason to go higher, not the least of which would be the Federal Reserve and its desire to cram liquidity into the marketplace. This should drive down the value of the US dollar and almost by matter of fact should drive the Euro higher.

Do not get me wrong, I do not think this is going to be the easiest move ever made, but we are in the midst of what looks like a trend change to me. Because of this, I am bullish of this market, but I also recognize that we have a lot of work to do to get to the final destination. The 1.17 level underneath will be the “floor” in the market for the short term, and therefore I will be paying close attention to it as far as an opportunity to rally for the bigger move. If we break down below there, then I have to rethink some things.

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