EUR/USD Price Forecast – Euro Falls Towards 50 Day EMA

The Euro fell a bit during the trading session on Monday to kick off the week on a negative tone, testing the 50 day EMA. At this point, if we break down below that level, it is likely that we will continue to try to wipe out the candlestick from last Thursday that was so bullish. If that is going to be the case, then the overall trend continues, as we simply chop sideways with a little bit more pressure to the downside than up.

EUR/USD Video 05.05.20

You have a couple of central banks looking to kill their own currencies, so that of course is going to make this a very erratic and choppy currency pair. If we were to break above the 200 day EMA to the upside, then that of course would be very bullish. However, the market looks likely to see a lot of noisy trading, and therefore do not be surprised at all to see this market see a lot of choppy behavior going forward. That being said though, the market will eventually work its way towards the bottom of the range unless of course something changes drastically, because quite frankly with what the Federal Reserve is doing currently, the fact that the Euro cannot take off above the first major resistance barrier tells you a lot about the potential weakness in the Euro overall. We do continue to see a lot of demand for US dollars around the world, and of course the European Union is lacking the United States on multiple levels.