EUR/USD Price Forecast – Euro Breaks Down Again

The Euro initially tried to rally during the trading session on Tuesday but found the 50 day EMA to be far too resistive to continue rallying. At this point, it makes sense that we would see a market move to the downside as we have seen a lot of negativity anyway. We are now essentially in the middle of the overall risk range, between the 1.0750 on the bottom and 1.10 on the top. In other words, there is not much to do at this point as the market is likely to see a lot of back-and-forth trading.

EUR/USD Video 06.05.20

To the downside, if we were to break down below the 1.0750 level, then the market is likely to reach towards the 1.0650 level which was the most recent lows. To the upside, the 1.10 level is massive in the eyes of the market, so I would anticipate that there should be plenty of selling in that area, and therefore I would be selling rather quickly. If the market broke above the 1.10 level, then I would pay attention to the 200 day EMA, as it should offer a massive resistance barrier. If we were to break above that level, then it could be a very bullish sign for the Euro but right now I do not see the argument for that happening, as there is a lot of concern around the world, and that of course should drive up demand for the greenback in general. All things being equal, I am looking for rallies to sell into or a break much lower.