EUR/USD Price Forecast – Euro falls but finds buyers in North American
The Euro fell rather hard to kick off the day on Friday but struggled to continue falling as the North Americans came on line. Ultimately, this is due to value hunting I believe, and a lot of the downward pressure was probably due to fears about Italian debt. However, if there’s one thing I’ve learned over the last decade a Forex trading is that the Euro somehow always finds a way out, and it looks as if the Americans and Canadians may be giving it just that.
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Below this level is the 1.15 level, an area that is extraordinarily supportive due to the longer-term consolidation area, and I believe it will continue to be so. If we were to break down below the 1.15 level, it would be very negative. I would anticipate buyers coming sooner rather than later, but I also recognize that there is a significant amount of resistance above the 1.18 level, so I don’t think that we have changed much over the last couple of weeks, I think we have just continued to see the consolidation. Overall, I believe that the market continues to be very noisy, but there’s probably more upward danger than downward at this point. Overall, I believe that we will eventually see a return towards the 1.18 level above. That doesn’t mean it’s going to be very easy, and quite frankly I don’t expect it to be. However, paying attention to value may be the best way to deal with this pair.