EUR/USD Price Forecast – Euro Gives Back Early Gains

The Euro has rallied initially during the trading session on Tuesday, reaching towards the 1.09 level before pulling back rather significantly. At this point, the market looks as if it is ready to continue to go with the “fade the rally” type of position being put on. To the downside, I believe that the 1.08 level will be targeted, and then eventually the 1.0750 level. This market continues to be very volatile, and I do not think that changes anytime soon.

EUR/USD Video 29.04.20

As the United States is getting ready to open, people are starting to price and the idea of more of a “risk on” environment in the United States vis-à-vis the European Union which seems to have a huge set of issues ahead of it going forward. Remember, we still have to deal with the Brexit situation, which is going to continue to be like an anchor around the neck of the EU and the UK. The United States dollar will continue to be a major beneficiary in the medium-term, although eventually somebody has to pay the bills for all of the new debt that has been issued. In the meantime, I like fading rallies and believe that the 1.09 level has shown itself to be relatively crucial, as we see sellers at that level every time, we approach it. To the downside, if we were to break down significantly, and perhaps even clear the 1.0650 level, that opens up the door to the 1.05 handle given enough time, but that obviously is a longer-term call.