EUR/USD Price Forecast – Euro explodes to the upside

The Euro exploded to the upside during the trading session on Thursday, as we continue to see the US dollar struggle, as the Federal Reserve has sounded more dovish in the last 24 hours. That being the case, there is a significant amount of resistance above at the 1.1350 level, so I think that what we are probably going to see is a bit of a pullback. In fact, we are already starting to see that as the Americans come on board, but if we were to break above the 200 day moving average, which is pictured in black above, then the market is free to go towards the 1.1450 level.

EURUSD analysis Video 21.06.19

That being said, and the fact that I do think that happens given enough time, we probably need to pullback to build up the necessary inertia. After all, we have been in a massive downtrend for some time, and it takes a while to break through that. Ultimately, this is a market that should continue to find plenty of interest, as we have seen such a shift in attitude, but at this point it’s very likely that there is plenty of support underneath, extending all the way to the 1.11 level. You can short this pair if you want to, but it’s much easier to simply buy dips as they show signs of support. Overall, I believe that we are building the base to change the trend longer term.

Please let us know what you think in the comments below