EUR/USD Price Forecast – Euro falls hard to start the dayThe Euro fell hard to start the day on Tuesday but has found a bit of support near the 1.17 level. This pullback could be offering a nice buying opportunity and could be the completion of a Wave 2 move as far as Elliott Wave traders are concerned.
The EUR/USD pair has been volatile during trading on Tuesday as less than stellar economic figures came out of the European Union. However, we have seen a bit of support at the 1.17 level at a bounce, as well as more of a “risk on” attitude in the United States, typically good for this pair. Because of this, I think that the market is probably going to try to rally from here and go looking towards 1.1750 level, and then eventually the 1.18 handle. The top of the overall consolidation at the 1.25 level is my longer-term target, but I recognize that there will be a lot of noise between here and there. The alternate scenario of course is that we break down, and if we do I think we could drop to the 1.1650 level rather quickly. However, as I record this it looks like the Americans are going to pick the ball up and turn things around.
I believe that there will continue to be a lot of volatility in this pair, but it appears that people are focusing more on the Italians coming back into the fold than the economic numbers in the European Union in the short term. There is still hope that there might be sooner rather than later interest rate hikes in the EU, so that of course is reflected in recent trading. Overall, this looks like it is a continuation of the “buy the dips” mentality that we have seen.