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EUR/USD Price Forecast – Euro continues to grind in range

By:
Christopher Lewis
Updated: May 30, 2019, 14:38 UTC

The Euro has done very little of the last couple weeks, simply bouncing around in a tight range. I believe that now that we are in the summer trading months, this is something that you will have to get used to. After all, there’s no real economic drivers one way or the other to change the attitude.

EUR/USD daily chart, May 31, 2019

The Euro recovered slightly during trading on Thursday, but not anything that was more than to be expected. After all, this is a pair that has been range bound for some time as is typical of the market. If you are looking for big moves, this is not going to be the pair for you. In the summer months it’s very common for currency markets to slow down, and the EUR/USD pair is probably one of the biggest culprits at this.

EURUSD analysis Video 31.05.19

Looking forward, it’s very likely that we continue to bounce around between the 1.11 level on the bottom in the 1.12 level on the top. As we are closer to the bottom than the top, a bit of about would make sense as well. If we were to break above the 1.12 level, there is significant resistance extending all the way to the 1.1250 level so it’s not until we break above there that I would be a buyer. I believe short-term buying opportunities presented themselves now, but I would be looking for more than about 30 pips.

To the downside, if we break down below the 1.11 handle, we could go down to 1.10 which should be massive support. That of course is a large, round, psychologically significant figure, and of course an area that has been important more than once in the past. All things being equal though, I think that’s about as low as this pair will go during the summer.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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