EUR/USD Price Forecast – Euro Continues to Grind Higher but Faces Headwinds

The Euro tried to rally during the trading session on Friday but has given back some of the gains relatively early. That suggests that the market is likely to see a lot of headwinds just above and could very well pull back. I am not necessarily calling for a major reversal, but I am becoming more convinced that the market is running out of momentum, which certainly could lead to a bit of a pullback.

EUR/USD Video 14.09.20

To the downside, I would fully anticipate that the 1.17 level offers a bit of support, and it is likely that we will continue to see buyers in that general vicinity. Having said that, I do believe that it is only a matter of time before we get an attempt to break down below there. The fear out there is somewhat palpable, and that of course drives money into the US Treasury markets. That demands US dollars. We are getting a bit exhausted, and perhaps the market got ahead of itself after the ECB meeting.

The selloff late in the day on Thursday shows just how much negativity there is out there, and I think at this point we are very likely to continue to see this market struggle. If we did break above the 1.20 level though, the Euro will fulfill the longer-term target of the 1.25 level. That is the standard consensus right now, but as I am sure you are aware oh, that does not necessarily mean anything. With this, I believe choppiness is probably the only thing that you can count on.

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