EUR/USD Price Forecast – Euro continues to sit still

The Euro tried to rally again during the trading session on Thursday in quiet Independence Day trading, but as you can see the gains have been short-lived. We have formed three inverted hammers in a row, which of course is a very interesting technical pattern. Now that we have the jobs number coming out on Friday, it’s possible that we could have a significant move. We are sitting on top of the 50 day EMA, so I think what happens next is going to be crucial.

EURUSD analysis Video 05.07.19

If we break down below the 50 day EMA and close below it on the daily chart, it could send this market down towards the 1.12 level next. That of course would be very bearish for the Euro and wipe out what has been a symmetrical and perfect bottoming pattern. That being said, if we were to break to the upside and wipe out these three long wicks, that would be an extraordinarily bullish sign and send the Euro back to the highs again. It would also do something more important: it would form a “higher low”, which of course is a major bullish sign as well.

To the upside I see the 1.1350 level is the beginning of resistance that extends to the 1.14 handle. I think that the Euro could go higher but it’s going to take something special to continue to go higher after that. It doesn’t mean that we can’t, just that it’s going to be very choppy to the upside, reaching towards the 1.15 handle. A break above that level signifies a major uptrend in the making.

Please let us know what you think in the comments below