EUR/USD Price Forecast – Euro Has Volatile Session After Agreement

The Euro went back and forth during the trading session on Tuesday as the leaders of the 27 nations agreed to a federalized stimulus program. This is an important first step in the growth of the European Union and perhaps even its viability. That being said, the price action is a bit exhausting, but it does appear that it is only a matter of time before we break out to the upside. The 1.15 level continues to be the “all clear” when it comes to the Euro changing its long-term trend.

EUR/USD Video 22.07.20

For what it is worth, several other pairs are also showing the same signs of crushing the US dollar. The Australian dollar is on the precipice of a major breakout, and the New Zealand dollar has arguably already done it. With that being the case, I think we continue to buy short-term dips and it looks as if the 1.14 level will continue to offer a significant amount of support for that move.

Even if we were to break down below there, it is very likely that the 1.1350 level would also offer support, and even though I did not like the shape of the bullish flag, the implied move is for the Euro to go as high as the 1.1950 area, give or take a few pips. In other words, it looks as if the longer-term trend of the US dollar going higher may have just taken yet another blow, perhaps enough change that trend. For those of you that have not been trading Forex for very long, true trend changes occur only every couple of years.

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