U.S. Markets closed

EUR/USD Price Forecast – Euro Continues To Fall Drastically

Christopher Lewis

The Euro has initially tried to rally during the trading session on Thursday but fallen apart again as we are pressing the 1.0850 level as I look at this chart. This is a horrific looking chart, and at this point it’s likely that the market is going to go looking towards the gap underneath at the 1.0750 level. At this point, with negative yielding bonds in the EU and the ECB jumping in and doing more of the same buying, the reality is that a lot of foreigners are throwing money in the US treasury markets, as we have positive yields there. Furthermore, the stock market continues to attract a lot of inflow from overseas so by necessity, this pair continues to fall.

EURUSD analysis Video 14.02.20

Breaking down below the 1.0 level was in fact a very negative sign, as it not only broke to a fresh, new low but it also broke the back of a hammer which of course is a very negative sign as well. Furthermore, I believe that rallies will continue to be sold into and the 1.09 level should offer plenty of resistance. Granted, we are a bit oversold at this point but that’s how this pair moves. It simply does nothing forever, and then falls apart for a couple of weeks. Then a grind sideways for three or four months, and then shoot straight up for three weeks. That’s just the nature of the pair as it is visited by so many high-frequency traders. Looking at this chart, the only thing you can do is sell rallies in the short term.

Please let us know what you think in the comments below

This article was originally posted on FX Empire