EUR/USD Price Forecast – Euro gets hammered on Thursday

The Euro initially tried to rally during the trading session on Thursday but gave back the gains and rolled over quite drastically. We are currently testing the 1.11 level as I write this article, an area that has been important in the past. However, I think we are eventually going to break that level and go looking towards the 1.10 level which of course is a large, round, psychologically significant figure. I think there will be a lot of fight in the Euro right there, but based upon longer-term Fibonacci retracement levels, we are below the 61.8% Fibonacci retracement level and I think we are going to go looking towards the 100% Fibonacci retracement level which is near the 1.05 handle.

EURUSD analysis Video 16.08.19

Rallies at this point continue to be selling opportunities, because we have tried to rally but as you can see in the area that I circled on the chart, there has been significant resistance and of course the 50 day EMA came into the market and offered significant resistance. I’m not saying that it’s going to be easy, but I do believe that we are going to go lower, as US treasuries continue to attract a lot of money and quite frankly the economic numbers out of the European Union are anemic to say the least. The ECB is about to embark on further quantitative easing, and that will weigh upon the Euro. Obviously, the Federal Reserve is probably going to do the same and at this point if we see a lot of concern around the world, it makes sense that the treasury market will drive flows of currency into the United States.

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