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EUR/USD Price Forecast – Euro Testing Top of Range

By:
Christopher Lewis
Updated: May 26, 2020, 15:11 UTC

The Euro has reached towards the top of the overall range that we have been in for some time but then it has started to pull back slightly.

EUR/USD

The Euro has rallied a bit during the trading session on Tuesday, but it has a significant barrier in the form of the 1.10 level above. The level is the top of a range that we have been in for some time, so it is not a huge surprise to see that the market is starting to pull back slightly. What is worth noting is that the Euro has been rallying until the Americans started to jump on board. The 200 day EMA sits just above the 1.10 level, so that could of course cause a significant amount of resistance as well. Ultimately, I think that the market probably continues to see selling pressure, and therefore likely to go looking towards the 50 day EMA.

EUR/USD Video 27.05.20

It should be noted that the 50 day EMA is sitting right in the middle of the overall range, so it makes sense that we would go back towards that area. Quite frankly, a lot of the exuberance that we are seeing is based upon the idea of finding it a potential vaccine. There are several possibilities right now, but markets seem to get way ahead of themselves for a few minutes every time it is mentioned that something is showing some promise. We are a long way away from that, and therefore I find it a bit difficult to think that we are suddenly going to turn around based upon this news. The markets are looking at two central banks here that are both extraordinarily loose with monetary policy, and therefore neither currency should be overly strong against the other.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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