EUR/USD Price Forecast – Euro has a wild ride to open the week

The fear of contagion with European banks had the Euro suffering over the last two trading days. However, their reports coming out now that the pastor that had been detained in Turkey may be released, and that should calm down some of the tensions between Turkey and the United States. This caused a spike in the value of the Turkish lira, which relieve some of the pressure and fear when it comes to European banks. With that in mind, is very likely that we could see a resumption of the move higher. However, I do see several technical levels above that will need to be paid attention to. For example, the 1.1475 level was a scene of significant supply in the past, and then of course there is a psychologically and structurally important 1.15 handle after that. In other words, although we have gotten a bit of a reprieve for the Euro, at the first signs of trouble this pair will roll over again.

Particularly unsettling about the situation is the fact that most people know very little about the Turkish economy, and suddenly at center stage for most traders around the world. Because of this, I think the market will continue to be very skittish, favoring safety over anything else. If we can break above the 1.1540 level, then I think the market will continue a much more substantial rally. Until then, short-term rallies could very well get turned around with the wrong words.

EUR USD Forecast Video 14.08.18