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EUR/USD Price Forecast – Euro Breaks Major Hurdle

By:
Christopher Lewis
Published: Jul 15, 2020, 14:11 GMT+00:00

The Euro broke above the 1.14 level drastically on Wednesday. There is a lot of noise between here and the 1.15 handle though.

EUR/USD

The Euro has rallied again during the trading session on Wednesday, as we have clearly broken through a significant amount of resistance. At this point in time, the market looks as if it is going to continue to grind higher and towards the 1.15 handle. That is a level that if we break, could very well end up being a longer-term trend change that could make careers if you can hang on to the position. This is part of the problem with trading Forex right now, we are at major inflection points in several currency pairs of the same time, so it is probably going to be very messy going forward, and probably cause you quite a few of headaches.

EUR/USD Video 16.07.20

To the downside, the 1.14 level should hold as support now, and if it does on any type of pullback that will show that we are more likely than not to finally break out. With the Federal Reserve loosening monetary policy in the European Union seemingly having a bit of a handle on the coronavirus outbreak, this is starting to favor the Euro, despite the fact that the European banking system is an absolute disaster.

It really comes down to what is moving the market currently, and now it is obvious that it is all about the pandemic, and nothing else. This should not be a huge surprise though if you have ever traded stock markets, because they do not move on fundamentals either. Having said that, it is obvious that the bullish pressure is building up and the 1.15 level will probably determine where this pair goes for the next couple of years.

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

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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