EUR/USD Forecast

The EUR/USD is testing key resistance after forming a potential double bottom, but weak bullish momentum and strong overhead resistance keep bears in control for now.

The euro showed slight recovery against the US dollar, but remains vulnerable below key resistance, with a break under 1.1550 likely to accelerate selling.

The euro continued to show weakness against the US dollar on Tuesday, with key support at 1.1550 in focus as bearish momentum builds below 1.16.

Amid heightened interest from forex traders in the future of US Federal Reserve policies and the ongoing dispute between Trump and bank officials over pressure to continue cutting interest rates, the main focus during today's trading session will be on the reaction to remarks from US Federal Reserve Chair Jerome Powell at 19:30 Egypt time. Prior to that, during the European session, the Euro's price will be influenced by the release of the German ZEW Indicator, which measures confidence in the Eurozone's largest economy, at 12:00 Egypt time.

Investor confidence in the US dollar as a safe-haven asset was renewed following Trump's threat to impose harsh tariffs on China starting next month, despite the ongoing US government shutdown now in its third week. This increased sell orders on the EUR/USD pair last week, with losses extending to the 1.1542 support level, near the pair's two-month low, before it closed the week stable around the 1.1622 level. Today, given the American holiday, the EUR/USD is expected to trade within a narrow range with a downward bias, hovering around and below the 1.1600 support level.

The Euro tried to rally a little bit during the trading session here on Friday, but it looks like the 1.16 level is in fact going to continue to offer a bit of resistance. At this point in time, if it does, the Euro probably drops down to the 1.15 level. And then after that, the 1.14 level, which of course has an area that I think a lot of people will be watching as it's been important previously, and it was where the market tested an uptrend line. Furthermore, the 1.14 level is also an area that the 200 day EMA is racing towards. With this being said, any rally at this point in time, I look at with suspicion until we can break above the 50 day EMA, and that of course being broken to the upside then could reassert the potential of the upside. But I think at this point, it really looks like the Euro is starting to roll over. And it's worth noting that the US dollar is strengthening against most currencies.

The Euro continued its decline on Thursday, breaking below key support as a strengthening US dollar signals growing risk aversion in global markets.

It looks like we are going to see yet another situation like we have seen over the last several days where the Euro gets sold off pretty early. But when the Americans show up, the United States dollar starts to shrink. And I think that is part of what's going on here. American traders are just simply selling the US dollar. That being said, the 1.16 level continues to offer support. And if we were to break down below that level, I think you've got a situation where we could really start to break down at that point, the market could drop to the 1.14 level, which of course is right about where the 200 day EMA is currently hanging around.

French political uncertainty has dominated sentiment, alongside a renewed recovery of the US dollar amid demand for it as a safe haven. Consequently, according to currency market trading, the EUR/USD pair tumbled to the 1.1598 support level, the currency pair's lowest in over a month. However, a temporary respite in Paris later provided short-term support, but bond market risks still loom over the Euro. According to reliable trading platforms, the EUR/USD price is stabilizing around the 1.1630 level at the beginning of today's session, Thursday.

Amid strong selling pressure, euro trading has witnessed a sharp decline amid political unrest in Europe and Asia. According to reliable trading platforms, the EUR/USD exchange rate has fallen towards the 1.1600 support level, the lowest level for the currency pair in more than a month. Currently, foreign exchange market analysts warn that French government instability and Japanese turmoil stemming from the yen could increase fourth-quarter volatility in currency markets.

The euro has plunged a bit during the early hours here on Tuesday as the US dollar continues to strengthen. Quite frankly, the US dollar just won't roll over and die like everybody said it was going to do. And now we find ourselves at the uptrend line. The uptrend line, of course, has been in effect since the middle of April, so it matter at this point, and we are below the 50-day EMA. Now keep in mind that during the Monday session, we made this exact same move only to bounce and form a hammer. If we break down below this uptrend line, then I think we've got a shot at running to the 1.16 level. The 1.16 level being broken to the downside opens up quite a bit of selling pressure, perhaps down to the 1.14 area where I would anticipate seeing the 200 day EMA come in and offer some noise. All things being equal.

The euro has initially fallen during the trading session here on Monday to break down to test this crucial uptrend line. That being said, it does look like they are at least trying to save the euro in early trading. A lot of things are going on in this chart that you may or may not be aware of.

The Euro continues to try to rally against the US dollar, but at this point in time, it's likely that the market continues to see selling pressure just above. And quite frankly, this has been a very lackluster week for the Euro. We are approaching an area that I think we have to make a decision with the uptrend line that’s coming into the picture. The 50-day EMA sitting just below the current area offers a bit of support as well. So, I'm paying close attention to this. The euro is going to have to basically put up or shut up pretty soon with threats against the U S dollar. One thing is for sure that since we have seen the FOMC press conference or the statement, you know, we just, we've seen the market do nothing but fall since then.

Euro remains volatile, capped by 1.18 resistance. Support lies at the 50-day EMA and trendline; breaks lower could expose 1.16–1.14, while bulls eye 1.19–1.20.

The Euro has initially rallied against the US dollar during the trading session here on Wednesday but then gave back a bit of the gains to turn around and show a massive shooting star by the time the Americans fully have the market in their hands. The 1.18 level continues to be a major barrier to overcome that we just really haven't seen happen yet. So, with that being the case, I think you have to look at this through the prism of a market that given enough time, we'll have to make a bigger decision. And to me, it looks like we are running out of momentum. If we fall from here, it's likely that we could go looking at the 50 day EMA. The 50 day EMA offer support, but breaking down below there, then opens up the possibility of an uptrend line coming into the picture for support. Beyond that, then we have the 1.16 level.