EUR/USD Price Forecast – Euro Bounces to Kickoff Week

The Euro rallied a bit during the trading session on Monday to kick off the week, but we have seen this market initially tried to rally during the beginning of most weeks over the last month or so, only to turn around and fall back down as far as risk appetite is concerned. That is going to continue to show itself in this pair eventually as well, as we had gotten far too overbought. Ultimately, the market is likely to drop from here and go down towards the 1.1050 level based upon the 200 day EMA and the fact that the market has been attracted to that level more than once in the past.

EUR/USD Video 23.06.20

To the upside, the 1.14 level is extremely resistive, extending all the way to the 1.15 handle and I think at that point the Euro gets far too expensive to continue going higher. With that in mind, I like the idea of fading if we get closer to that level as well. Ultimately, I do not have any interest in buying the Euro right now, especially as the market has gotten way ahead of itself, and now we have to worry about whether or not the Europeans will get some type of consolidation when it comes to funding for the pandemic, which at first seemed like we were, but now there has been a bit of pushback from Angela Merkel’s initial statement on Friday. Ultimately though, the market is simply looking heavy at this point, so that could weigh upon the market as well, and therefore traders will continue to fade.

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