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EUR/USD Price Forecast – Euro breaks support

Christopher Lewis

The Euro initially tried to rally a little bit during the trading session on Friday, but then rolled over rather significantly and below the 1.11 handle. At this point I think it’s obvious that the Euro is going to try to go down to the 1.10 level underneath. When you look at the longer-term charts, we are most certainly in a downtrend and the Fibonacci retracement tool suggests that we could go down to the 100% Fibonacci level underneath. That would be a move down to the 1.05 EUR level, as we are well below the 61.8% Fibonacci retracement level.

EUR/USD Video 19.08.19

The US dollar will continue to attract a lot of attention due to the bond markets and a flight to safety. The Euro has to deal with Germany putting out horrible economic numbers as of late, and that of course is a major factor in what happens with the Euro in general. We have completely wiped out most of the bounce now, and the fact that people are willing to do that into the weekend tells me that there is serious conviction to the downside. To the upside, the 1.12 level should be massive resistance as we have seen, and of course we have the 50 day EMA slicing through that area and now shooting lower. Ultimately, I think rallies are to be sold and the overall downtrend should continue as the negativity certainly won’t go away. I am fading rallies going forward, and believe that it’s only a matter time before the US dollar strengthens against the Euro drastically.

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This article was originally posted on FX Empire

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