EUR/USD Price Forecast – Euro show signs of life at lows again
The Euro got a bit of a bounce during the trading session on Thursday as we continue to churn around the 1.13 level. Because of this, I think what we are looking at is a scenario that probably favors a move to the upside only because the United States released such poor Retail Sales figures as well as PPI numbers. This probably signifies that the Federal Reserve is in fact going to need to stay very loose, and that will bring down the value of the US dollar somewhat. Truthfully, the only thing that is keeping this pair down is the European Union itself.
EURUSD analysis Video 14.02.19
Looking at this market, we have been consolidating from this level to the 1.15 handle, and it looks like we are just simply churning in this area is a figure out whether or not we can get the momentum to go higher. If we can, that’s probably the move, a simple return to the top of the range. However, if we break down below the lows, it’s likely that we could see market participants drive this pair down to the 1.12 level where I would expect to see even more support due to the 61.8% Fibonacci retracement level and the previous resistance for a couple of years in that region.
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It’s going to be choppy, but I do believe that we are starting to find a lot of value hunters in this market, and as a result I suspect that the downside is somewhat limited at this point in time.
Please let us know what you think in the comments below