EUR/USD Forecast Today 27/03: Bounce Or Break? (Chart)

(MENAFN- Daily Forex)

• During trading on Wednesday, we have seen a lot of back and forth trading in the EUR/USD pair.
• What I think is most important to pay attention to here is the fact that we are hanging around the crucial 1.08 level, or perhaps I should say just below it, suggest that we are looking for the market to find the floor in the range that we are trying to set up.
• That being said, it's probably worth noting that the previous 2 candlesticks are in fact inverted hammers, which of course is not a good look.

With that being said, I think we have a lot of volatility just waiting to happen, but if we were to break down below the lows of the day, then I think you've got a shot at the EUR/USD pair dropping to the 1.07 level. In that environment, I suspect that we will have more of a“risk off environment” around the world, and we could start to wrestle with the idea of testing the 200 Day EMA.

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The technical analysis for this pair is bullish at the moment, but it also is worth noting that the last couple of days have produced a bit of a mixed signal. After all, we have seen the market try to rally a couple of times, but it just doesn't have the momentum to truly do it. On the other hand, we also seemingly are trying to respect the short-term floor in the market, so I think at this point in time you just have a market that has no idea what to do with itself.

EURUSD Chart by TradingView

If we do rally, then I don't necessarily think that it's a hugely bullish sign, it's just a sign that we will return to the same consolidation region that we had been in previously. While this is a good sign for the euro, it doesn't necessarily mean that we are going to take off to the upside and start ripping skyward again. I think you need to watch that bottom, and if we don't break down below it, we just simply continue to more sideways work, perhaps working off some of the froth.

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