EUR/USD Price Forecast – Euro Extends Gains

The Euro has rallied a bit during the trading session on Wednesday, as we wait to see whether or not the Federal Reserve will do anything to change its stance. It seems very unlikely, and it is more than likely that we are going to see Jerome Powell reiterate the idea of loose monetary policy as far as the eye can see. If that is going to be the case, then it is highly likely that we will see a move towards the 1.15 handle. However, if he does something to spook traders, we could see a massive unwind of the huge move higher. At this point, the market is likely trying to find whether or not the traders can be comfortable up here, or if the market needs to pullback in order to find some type of support.

EUR/USD Video 11.06.20

A break above the 1.15 handle is a sign of a major breakout and could send this market looking towards the 1.1750 level. Ultimately, this is a market that does look like it is trying to break out, but we have seen this move recently, going back to the month of February, and we saw how quickly market participants bailed out on the Euro. Looking at this chart, we are also getting ready to have the “golden cross” when the 50 day EMA crosses above the 200 day EMA. At this point, it would signal a longer-term “buy-and-hold” type of signal, but that seems to be a bit premature in the short term. After the Federal Reserve, we could get a little bit more in the way of clarity.

For a look at all of today’s economic events, check out our economic calendar.