EUR/USD Price Forecast – Euro breaks through 1.15, kind of

The Euro rallied during Asian trading on Tuesday, breaking above the vital 1.15 level. However, gains were short-lived, as we pulled back to test that area by the time the Americans jumped on board. Ultimately, this is not an impressive breakout by any stretch of the imagination, and one would have to think that Turkey will still be on the minds of a lot of traders. The question now is whether the hammer from the last week was the sign of a technical bounce, or is it value hunting? It’s hard to tell at this point, but so far I would suspect that it might just be more of a technical correction. I see an area that extends to the 1.1550 level that could offer a bit more room to the upside without too much effort, but once we get above that level things get interesting.

Headlines will of course move the market, but it should be noted that the US dollar is trying to strengthen as New York starts up the day. If that’s the case, it will certainly show itself in this currency pair. Market participants continue to be very nervous about the situation in the EU, because contagion is something that is still in the back of the minds of a lot of traders. Pay attention to headlines out of Turkey, the worse they get the worse the Euro will probably get.

EUR/USD Forecast Video 22.08.18