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EUR/USD Price Forecast – Euro continues to look soft

By:
Christopher Lewis
Updated: May 28, 2019, 04:40 UTC

The Euro back and forth over the last couple of weeks, and now it looks as if we are trying to form some type of bottoming patter. However, there isn’t enough good news coming out of EU to justify some type of a major rally. It appears that we are stuck for a while.

EUR/USD daily chart, May 28, 2019

The Euro continues to bounce around the 1.12 level with extreme resistance shown at that point. It’s very likely that the market will try to break above there, and if we do then we could go looking towards the 1.14 level. To the downside, I still see the 1.10 level at support and if that gives way we probably go down to the 1.10 level. Ultimately, this is a market it looks as if it is going to make a move, it’s probably not going to make it soon. I think we are trying to bottom but that is going to be a longer-term proposition at this point.

EUR USD Forecast Video 28.05.19

Quite frankly I believe that the market is trading basically on the value of the US dollar more than anything else. It’s more of a “risk on/risk off” scenario. I think at this point we are very likely to see a lot of volatility but I do believe that it’s only a matter of time before we have to make some type of decision. This could be a very choppy and sideways summer though, so keep that in mind.

Global growth is an issue, but at this point one would have to think that the Euro is extraordinarily cheap from a longer-term perspective. Nonetheless, there still seems to be a bid for US treasuries, so that’s something that can’t be ignored, as it will most certainly be dollar supportive.

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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