EUR/USD Price Forecast – Euro All Over The Place After Lack Of Cut

The Euro initially tried to rally during the trading session on Thursday, but then fell below the 1.1250 level, only to bounce again during the announcement and then sell off again. The Euro continues to look a bit overvalued, but with Christine Largarde failing to cut rates for the European Central Bank, it did cause a little bit of strength during the day. At this point, it’s difficult to understand where we go next, because it is going to come down to the markets perception of liquidity provisions taken by the ECB.

EUR/USD Video 13.03.20

At this point in time, the markets continue to be very uncertain, and the Euro probably needs to be priced according to whether or not the Federal Reserve cuts rates further. The market is projecting that the Fed is going to do that, so it’s very possible that the Euro will be resilient going forward. The 200 day EMA sits at the 1.11 level so I would anticipate that level to be of significant support. To the upside, the most obvious resistance barrier is the 1.15 handle, and we are currently right in the middle, making this a bit of a neutral market.

The risk appetite of traders will also have a lot to do with what happens next, and as we are seeing coronavirus hit the United States and that of course is starting to affect the US dollar, although it is stronger during the day on Thursday in a rush towards the treasury markets.