EUR/USD Price Forecast – Euro finding supportEUR/USD is a pair that has been very choppy as of late, as we have a Federal Reserve that suddenly seems a bit more dovish, but at the same time we have a lot of issues in the European Union. Because of this, it shouldn’t be surprising that the range for the average day has been rather small.
The Euro initially pulled back during the trading session on Tuesday but found enough support at the 50 day EMA to turn things around and show signs of life again. Because of this, it’s likely that the market will continue to grind higher overall, but it is going to be a very messy move to say the least. I think at this point it is likely that the 1.15 level above will cause major resistance, but at the same time I think that the 200 day EMA just above is going to be every bit the problem that the round figure will be. Because of this, I like the idea of buying for a short-term move more than anything else.
EUR/USD Forecast Video 06.02.19
I believe that the biggest problem that we face here is that both central banks are rather soft, so even though Jerome Powell recently sounded a bit more dovish, the ECB and its whole plethora of problems on the continent will provide a little bit of a lid on this market as we continue to see so much in the way of overall noise. I think it’s going to be difficult to hang onto a trade for any length of time here, which has been the norm for several months, if not years. If we do break down below the 50 day EMA, the market probably has plenty of support at the 1.13 level.
Please let us know what you think in the comments below