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EUR/USD Price Forecast – Euro Get Slight Pop

By:
Christopher Lewis
Published: Jun 19, 2020, 13:59 UTC

The Euro rallied slightly during on Friday, as it appears that the bailout package for the pandemic is being made some progress on by leaders.

EUR/USD

The Euro rallied significantly during the trading session on Friday, reaching towards the 1.1250 level before pulling back a bit. Ultimately, this is a market that I think will continue to suffer at the hands of indecision and disbelief, as the finance ministers in the European Union are working on a pandemic type of bailout package. Angela Merkel suggested that she was happy with the framework and that there would be more work done in July. However, members from Finland and Sweden did not sound quite as upbeat. With that in mind, it is difficult to imagine that there is a lot of unity in the European Union at the moment.

EUR/USD Video 22.06.20

Because of this, I think we will come back down to reality after the massive move that we had previously had. The 200 day EMA sits down at the 1.1050 level, and that could be a target eventually. That being said, the market looks very choppy on the way down there, so do not expect big moves. What I have been doing is fading short-term rallies that show signs of exhaustion. There is a lot of noise above, and we are continually making “lower highs”, so I do think that it is only a matter of time before we get down there. To the upside, I think the 1.14 level continues to be massive resistance, and more of the chop-chop behavior of the EUR/USD is what we are looking at, albeit with a slightly negative tilt.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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