EUR/USD Price Forecast – Euro continues to recover on Monday

By all accounts, the US dollar has been overbought lately. I believe that this market is simply doing some type of technical bounce, as we did of forming a nice hammer for the week previously. That’s a pretty good sign to start buying, and I think that we will probably go looking towards the vital 1.15 level above, which was previous support. At this point, it should be significant resistance, and I think it will take something rather special to break above there. If we do, that could bring in much more stringent buying. Obviously, that would be a “risk on” move, perhaps with some type of resolution of the Turkish crisis. Remember, a lot of the selling off has been due to people worried about Turkish debt causing a contagion problem in the EU banking system. Ultimately, this is a market that will probably continue to try to show support at the 1.14 level, and I think it’s vital for that level to hold in order for the short term momentum to continue.

As we start the US session, it looks as if we are in fact finding plenty of buyers, and I think that at this point the US dollar will need to take a bit of a break from being so strong. This should help the general “risk on” attitude, and I think that the 1.15 level will be far too strong of a target for people to ignore.

EUR USD Forecast Video 21.08.18