EUR/USD Price Forecast – Euro find support on ThursdayThe Euro initially fell during the trading session on Thursday but has turned around to show signs of support again. As we hover around the 1.14 handle, it is becoming increasingly obvious that the buyers are starting to flex their muscles and win this argument.
The Euro initially fell during Thursday, but then bounced enough to form a little bit more of an impressive candle. The 1.14 level of course has been important on short-term charts, and it looks as if the area is definitely where we will see a lot of interest. At this point, the 1.15 level above will be resistance, and most certainly the 200 day EMA will as well. However, when I look at this chart I recognize that we are currently forming a bit of a “rounded bottom”, and therefore we should continue to grind higher.
EURUSD analysis Video
The “rounded bottom” is a pattern that is very slow to form, and it takes quite a bit of time to break out. That being the case, if you are going to be buying this pair, you need to be very cautious and certainly will need to be patient and waiting for the market to extend to the upside. However, if we were to turn around and break down below the 1.13 level, that would be a very negative sign and could send this market back down to the 1.1150 level.
I do believe that the 200 day EMA is going to cause a lot of resistance, but if we can break above there on a daily close, we could go much higher and reach towards the 1.18 level. That would be a longer-term “buy-and-hold” signal for trim traders as well, so that of course will help get you going.