EUR/USD Price Forecast – Euro breaks outThe Euro broke out during the trading session on Wednesday, slicing through a “neckline” of a very complex inverse head and shoulders that I was talking about yesterday. I think at this point we will more than likely go looking towards the next round figure where I expect a fight.
The Euro rallied significantly during the trading session on Wednesday, breaking above the neckline of an inverse head and shoulders, which measures for a move to roughly 1.20. However, I think the 1.18 level above is going to cause a significant amount of resistance, so don’t be surprised at all if we need a pullback in the short term. However, I think that the 1.1725 level will now more than likely offer support as this has been such a major and obvious breakout. Overall, I believe that the Euro is going to gain from the lack of focus on European banks, and more focus on the US/China trade relations. Overall, if we can break above the 1.18 level I think that the move to the 1.20 could be rather quick.
The alternate scenario of course is that we turn around and wipe out this break out. That’s always possible, but at this point it looks less likely. The Euro has been very resilient and I don’t see that changing in the short term. Overall, I anticipate dips offering value the people are willing to take advantage of, as the Euro looks ready to take off overall. If we did break down, I think that the 1.1650 level would then offer the next potential buying area, and I currently have no interest in shorting this market at all as I’ve seen so much momentum shift over the last several weeks.