EUR/USD Price Forecast – Euro Breaks Higher and Into Resistance

The Euro has gained during the trading session again on Thursday, reaching towards the major sell off area, and at this point I think that it makes quite a bit of sense that we will see this market pullback. Most of what’s been driving this currency pair has been Europeans taking money back from New York, driving flows back across the Atlantic Ocean. However, when you look at the underlying fundamentals between the two economies, it is only a matter of time before the Euro gets hammered again, as the economic situation in the United States is much stronger than the European Union.

EUR/USD Video 28.02.20

When you look at the significant sell off heading into this, it does make sense that there was a relief rally anyway. At this point, it’s likely that the market will go looking towards the 1.08 level and perhaps even lower than that longer term. The Euro doesn’t reflect the lack of yields in the European Union, nor does it reflect the fact that money has been reaching towards US bonds. Longer-term, I do think that we not only go lower from here, but I think we go much lower. Rallies at this point continue to be selling opportunities but we do not have the candlestick to suggest that quite yet. The simple matter of taking your time and being patient should pay off nicely, as it is only a matter of time before the markets focus less on viruses and economic reality. We are in a downtrend, but had gotten a bit oversold.