EUR/USD Price Forecast – Euro Choppy to Kickoff Week

The Euro initially rallied towards the 50 day EMA above, but then pulled back a bit. The 1.0950 level coincides with the 50 day EMA but quite frankly with the lack of liquidity during most of the session, it’s a bit difficult to get overly excited about the candlestick one way or the other. The market continues to look at the 1.10 level above as psychological resistance, and it certainly looks as if we are going to try to get to their in order to test that again.

EUR/USD Video 14.04.20

On the other hand, if we break down below the bottom of the candlestick for the Monday session that I think we make a looking towards the 1.08 level underneath, which is an area that has offered support. If we break down below there, then the market is likely to reach down towards the 1.06 region, perhaps even the 1.05 level. Expect a lot of choppy noise, because quite frankly the Federal Reserve and the European Central Bank are both looking to flood the market will liquidity, so this is essentially going to be a fight between a couple of lightweights. We have seen the initial move higher due to the death rate in the European Union slowing slightly. I believe that the market will probably continue to go back and forth based upon headlines when it comes to coronavirus and of course the Federal Reserve. Ultimately, the market will continue to be very choppy and difficult to deal with, so keep your position size relatively small.