EUR/USD Price Forecast – Euro continues to trade in a tight areaThe Euro did very little during the trading session on Thursday, as we continue to see a lot of back and forth when it comes the financial markets. Obviously, the Euro isn’t going to be any different, and as we have so many moving pieces.
The Euro continues to trade right around the 1.12 level, an area that has been important more than once. It was the support level of the previous consolidation area, so it should now be significant resistance. That being said, I don’t necessarily think we are going to see some type of massive break down, unless of course the US/China trade situation gets extraordinarily worse, which could have money flowing into the bond markets, which of course demand US dollars.
EURUSD analysis Video 10.05.19
To the upside, I think there is a significant amount of resistance baked into the 1.1250 level, not only because it is the top of the support level from previous trading, but it is also the scene of the 50 day EMA. That of course will attract a certain amount of attention, so I think it’s likely that rallies will be sold. However, if we were to break above that level I think that we could go towards the 1.13 level, and then the 1.14 level. This would take some type of good news in the financial markets, perhaps a trade deal being worked out.
Longer-term though, I think we are going to see a lot of choppy back-and-forth trading, so quite frankly I don’t have much interest in trading the Euro right now. All things being said though, it’s likely that if you are short-term scalper, you can probably take advantage of back and forth trading on small time frames. Longer-term trades need much more clarity.
Please let us know what you think in the comments below