EUR/USD Price Forecast – ECB stepping away slowly

The Euro fell rather hard during the trading session on Thursday, after we initially tried to rally. This was because the ECB suggested that although they are stepping away from quantitative easing going forward, it’s only cutting it in half, and I think that was a bit of a disappointment for the Euro bulls. Ultimately, I think that the market is ready to continue breaking down a bit, but obviously is going to be very noisy. The question now is whether or not we can reach the 1.15 level underneath? That’s an area that is massive support, and we did form a massive weekly candle that was a perfect camera there. I think we have a couple of rough weeks ahead of us, and I believe that you should not get married to any particular position.

Ultimately, this is a market that I think will continue to see a lot of headline risk, but I believe that with the higher interest rates in the United States coming in the European Union dragging its feet, it’s likely that we will continue to see a lot of bearish pressure on short-term rallies. At this point, I think we may be seeing the market return to the downside for a significant move again, but at the same time it’s not going to be a straightforward move, as there are so many different moving pieces to this puzzle.