EUR/USD Price Forecast – Euro Pulls Back

The Euro has broken down a bit during the trading session on Friday in reaction to the Americans killing the Iranian general, but at the end of the day it looks like the Euro is finding some buying pressure near the 200 day EMA. That of course is a good sign, and if we can stay above the 200 day EMA it’s likely that the upward pressure will continue. If we can break above the shooting star from earlier in the week that would be a longer-term bullish signal that could send this market looking towards the 1.14 handle.

EUR/USD Video 06.01.20

Alternately, if we were to break down below the 50 day EMA which is painted in red on the chart, then it could break down much lower, perhaps reaching down to the 1.10 level underneath which has been crucial before. All things being equal though, we have made a series a “higher highs”, as well as “higher lows.” Ultimately, this is a bullish sign and it looks as if we may continue to see a bit of upward pressure. If we can wipe out the candlestick for Friday, I think that is the first sign that we are going to go much higher. That doesn’t mean that is going to be easy, but it certainly looks as if we are trying to get rid of the downtrend at this point that has been so prevalent in the EUR/USD pair as European economic numbers are still relatively anemic, but they have stabilized.

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