EUR/USD Price Forecast – Euro Continues to Grind in Same Range
The Euro rallied significantly during the trading session on Wednesday, as we continue to see a lot of noise in this pair. The latest noise was based upon the tweet by Donald Trump suggesting that stimulus checks should be in a separate bill as opposed to the stimulus bill that was being argued about during the previous session. The question now is whether or not the market buys this latest twist? I suspect it probably will not, and the first time that somebody shoots down that idea, this pair will probably roll right back over.
EUR/USD Video 08.10.20
At this point, there is a lot of noise out there and you cannot put too much into the pair at one point. That is probably the case for most currency pairs, so I am not sure why this one would change. The 1.17 level underneath should be a certain amount of support, just as the previous uptrend line should be a certain amount of resistance. If we do break to the upside, then the market is likely to go looking towards the 1.1850 level. Keep in mind that the US dollar is considered to be a “safety currency”, and it is likely that we are going to continue to see traders run towards the US dollar if things get even uglier.
Your capital is at risk
Between now and the election, I think that we are in for a lot of twist and turns, and the choppiness will continue to be a major issue. Looking at this chart, it looks like we could make a big move eventually, but at this point clarity is something that we just do not have.
For a look at all of today’s economic events, check out our economic calendar.