EUR/USD Price Forecast – Euro plummets after press conferenceThe EUR/USD pair fell rather hard during the trading session on Thursday after the ECB press conference. During this press conference, Mario Draghi suggested that perhaps the European Union is going to continue to suffer at the hands of the Brexit as well.
The Euro has initially rallied during the trading session on Thursday, only to turn around and plummet to a fresh, new low after the ECB press conference. It was suggested that perhaps the European Union won’t necessarily leave the Brexit unscathed either, which for some reason seems to be news to traders. That being said, we are getting dangerously close to a major support level on the daily chart, so I think that a bounce is probably due. I think the 1.1450 level above will certainly be a certain amount of resistance, so I’m not looking for some type of massive explosion to the upside.
The 1.13 level is massive support, and the 1.1350 level is rather stringent and its own right. Because of this, I think it’s possible that we may see a lot of volatility in this area, as the Euro is getting at dangerously low levels recently. Remember, we had broken through a massive amount of resistance to get to where we were just a couple of days ago, so one would have to think there’s a certain amount of market memory down here that will eventually become part of the equation. If we do break down below the 1.13 level, that would in fact be extraordinarily negative for the Euro, sending it much lower, perhaps down to 1.12 and then 1.10 after that. I think at this point, it’s becoming obvious that short-term scalping strategies with a somewhat negative bias is probably going to be the best way to play this market.