EUR/USD Price Forecast – Euro breaks down significantly

The Euro initially tried to rally a bit during the trading session on Thursday but gave back the gains and then broke down even further. At this point, the Euro looks as if it is in real trouble.
Christopher Lewis
EUR/USD daily chart, April 26, 2019

The Euro initially tried to rally during the trading session on Thursday, but then rolled over rather significantly. We continue to see a lot of US dollar strength, for a whole host of reasons. The ECB is extremely loose and of course the economic numbers in the European Union aren’t exactly anything to be looked at with envy. The market is very likely to continue to reach towards the 1.11 handle, and then the even more important 1.10 level underneath which is not only psychologically important, but structurally important as well.

EURUSD analysis Video 26.04.19

If we turn around and rally from here, I suspect that the 1.12 level will be massive resistance as it was previous support. In general, the market is one that can’t be bought, at least not until we break above the most recent high, which is quite a distance away. The US dollar continues to strengthen due to the bond market, the stock market in the United States, and general fear.

This is a bit of a falling knife, so clearly buying is something that would be almost impossible unless of course we get some type of daily hammer at a significant level, such as the previously mentioned 1.10 level. If we break down below there, it’s rather difficult to figure out where we go from there. If we break above the 1.1250 level, then it could show enough strength to believe in a rally but ultimately it looks very unlikely to happen anytime soon. This is a market that looks like it could be rather negative for a while. I do not trust rallies until proven otherwise.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.