EUR/USD Price Forecast – Euro falls to look for support on Friday

The EUR/USD pair initially fell during the Friday session, reaching down to the 1.16 level underneath. Having said that, the market looks as if there is a significant amount of demand in that area, and I think that people are willing to step in and pick up this currency at these low levels. However, I also see a lot of noise above, so I suspect that we are going to continue to chop around overall. If we did break down below the 1.16 level, then the next logical place to see support would be the 1.15 level which had been so resistive in the past.

The Euro continues to suffer at the hands of the political drama unfolding in the EU, mainly between German members and of course the continuing saga of the United Kingdom leaving that area. I think the market will eventually find reasons to go higher, simply because we are starting to get so “cheap.” However, understand that the volatility is going to be higher than usual, and therefore I think you are better off trading small positions, looking for value overall. A break down below the 1.15 level would be catastrophic for the Euro and send it down to the 1.1250 level. I do think a bounce is coming, but we need to be very cautious about our position size between now and then because so many things can happen as far as headlines are concerned. If we can break above the 1.17 level, that should bring in a bit of a longer-term move towards the 1.1850 handle.

EUR/USD Video 16.07.18