EUR/USD Price Forecast – Euro bounces on Thursday

The EUR/USD pair initially dropped towards the 1.15 level underneath, which of course has been a massive support and resistance barrier on longer-term charts and I have been speaking about it for some time. The fact that we bounced from there is not a huge surprise, as it is not only a large, round, psychologically significant number, but also the fact that it had been massive resistance for a couple of years a while ago. The market has plenty of resistance above, so I think at this point it’s likely that we will get more opportunities to short signs of exhaustion.

There will continue to be concerns about Angela Merkel and whether she can retain power, and of course there are a lot of concerns when it comes to Italy and it working its way towards the same path as Great Britain. We also have lots of problems with Eastern European nations, and I think investors are starting to become concerned whether the EU can hold itself together again. This seems to be a cyclical thing, every couple of years we go from worrying about the United States to worrying about the European Union. The European Union is also very vulnerable to trade tariffs from the United States, and any type of global trade war that flares up. This of course, seems to be more likely by the day so I believe the Euro will continue to struggle overall. However, if we were to break above the 1.1750 level, then I think the momentum would carry the market higher.

EURUSD analysis Video 29.06.18