EUR/USD Price Forecast – Euro continues to look heavy

The Euro rallied a bit during the trading session on Monday to kick the week off, but then rolled over near the 1.12 handle. This is an area where you would expect to see trouble, because it is such a large, round, psychologically significant figure and a place where we have seen both support and resistance in the past.

EUR USD Forecast Video 07.05.19

That being said, the market is struggling and now it looks as if the Euro could roll over in general, and then it could send this market down to a couple of different places. The initial target I believe would be the 1.11 handle, which has been tested previously. If we can break down below that level, then it’s very likely that we could go down to the 1.10 level underneath, which is even more important from a longer-term standpoint. Because of this, I think that is our eventual target, but it’s going to take a while to get there as this pair tends to be extraordinarily choppy under the best of circumstances.

Notice that the 50 day EMA, pictured in red on the chart, has offered perfect resistance the last couple of rallies, so I think it should continue to be massive resistance. If we can break above there, then we could start to talk about a recovery by the Euro but right now that looks to be far away. Selling rallies continues to work.

Please let us know what you think in the comments below