EUR/USD Price Forecast – Euro Continues to GrindThe Euro initially tried to rally during the trading session on Monday but found enough resistance near the 1.1150 level to find sellers again.
The Euro has rallied a bit during the trading session on Monday initially, through Asia and the beginning of the European session. However, the market has pulled back from resistance and certainly has given up some strength as it is a bit overstretched. The question now is whether or not the market pulls back from here and goes lower, or can it break out to the upside? With that being the case, if we break back down below the 1.11 level, I anticipate that the market probably goes looking towards 1.10 level, which is basically where the 200 day EMA is at. On the other hand, if the market were to break to the upside then we get a bullish move towards 1.1225 handle.
EUR/USD Video 02.06.20
Keep in mind that the Euro has a lot to deal with, not the least of which will be the Brexit but there has been a lot of positive build the due to idea of Germany backing all of the bonds in the EU. If that is going to be the case, that it becomes more “federalized”, that takes quite a few the concerns about the Euro off the table. This should in theory at least be good for the Euro, but the US dollar being the safety currency will continue to get a bit of a bit, and at the very least we are overstretched. It is because of this that I find it easier to short the Euro for the next day or so, depending on what happens at the 200 day EMA.
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