EUR/USD Price Forecast – Euro Continues To Build A Base

The Euro gapped lower to kick off the week on Monday, showing signs of weakness, but then turned around to fill the gap. At this point it looks as if the Euro is ready to reach higher, and at this point I believe that the 1.09 level is a very interesting area that we can start selling at. If the market breaks above there, then it’s likely that the 1.10 level above also offers resistance. Signs of exhaustion should be jumped upon as the US dollar is most certainly favored over the Euro. The German Ifo Business Climate figures came out at 96.1 earlier in the day, much better than the expected reading of 95.

EUR/USD Video 25.02.20

At this point, it’s simply a matter of sitting on your hands and waiting for a sign to start selling. Buying down here is certainly very risky, but it should be noted that there was a hammer form last week right at a gap so in theory if the Euro was going to turn around and reach to the upside, perhaps changing the trend, from a technical analysis standpoint this is exactly where you would expect to see it. That being said though, I suspect that this bounce simply has more to do with the fact that the market broke apart. It can’t go lower forever, so at this point a bit of a bounce back makes quite a bit of sense. I more than willing to take advantage of that, but I need to see a daily candlestick show signs of exhaustion in the form of a shooting star or something of that ilk.

This article was originally posted on FX Empire

More From FXEMPIRE:

• Natural Gas Price Prediction – Prices Drop as Exports are Expected to Decline

• Chart of the Week: Japan Machine Tool Orders

• Equities Plunge, Coronavirus Spreads, A Major Correction Has Begun

• GBP/JPY Price Forecast – British Pound Pulls Back In Risk Off Environment

• Crude Oil Price Forecast – Crude Oil Markets Break Down Yet Again

• Safe Haven and Tight Supply Commodities in Demand