EUR/USD Price Forecast – Euro Choppy Yet Again

The Euro has gotten a bit choppy during the trading session on Thursday again, as the market certainly looks to be a little over extended. At this point, the market needs to either digest gains or pullback if the Euro is going to continue to be stronger than the greenback. Having said that, this is a market that I do not think has any business being this high, because it shows more of a “risk on” type of attitude. Granted, Jerome Powell was extraordinarily dovish and negative about the economy, but if that is going to be the case then it is a global issue, not just a US centric one. If that is the case, then the European Union is probably in much worse condition than most people realize.

EUR/USD Video 12.06.20

That being said, it is very possible that we are simply trying to test the range again, which we have basically done. In other words, we are much more likely to see downward pressure than up, and a pullback would not be a huge surprise. I recognize the 1.15 level above as a major resistance barrier, so if we break above there it would of course be a huge statement of confidence in the Euro. I do not see that happening, at least not very easily right now and as you can see, although we have been pressing higher and higher, we clearly have run into a bit of trouble here. I suspect that there is much more risk of a pullback than there is a breakout, at least in the short term. This could lead all the way back towards the 1.1050 level, but obviously we would need some type of shock to make that happen.

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