EUR/USD Price Forecast – Euro continues to bounce around

The Euro went back and forth against the US dollar on Friday, as the markets don’t really know what to do. After all, we have the trade war going on which of course is going to cause a lot of issues, and of course the US treasury markets have essentially been on fire as money flowed into that market. With that being the case, it’s very likely that the US dollar should continue to see strength overall, but that’s not to say that we can get some type of bounce here. If we do, I expect that the 1.12 level should be resistance, offering an opportunity to start shorting the market again. Above there, I believe that the 1.1250 level is also resistance.

EUR/USD Video 20.05.19

The pair breaking below the 1.1150 level for at least a couple of hours could send this market down to the 1.11 handle, which could open up the door to the 1.10 level after that. That is an area where I would expect to see a massive amount of support based upon the large come around, psychologically significant figure, and of course the area had previously been both support and resistance, so it makes sense that we will see a massive fight at that level. That’s not a huge surprise though, because quite frankly this market does tend to move to large handles and then grind. Overall though, I do prefer the downside and have no interest in buying until we can break above the 1.1250 level on a daily close.

Please let us know what you think in the comments below