EUR/USD Price Forecast – Euro Pulls Back Down

The Euro fell hard during the trading session on Friday to close out the week, reaching down towards the 1.11 handle by midday. Ultimately, this is a market that is extraordinarily volatile and with the Germans willing to blow out their budget, this changes a lot of situations when it comes to measuring the value of the common currency. With that being the case, the market is very likely to continue to see a lot of volatility, but it certainly seems to favor the US dollar again.

The Euro got a bit of a bounce due to the fact that the Federal Reserve is expected to do so much in the way of interest-rate cuts, but ultimately this is a scenario of trying to get a bit of safety. After all, the European Union is almost certainly heading into a recession, but at this point one would have to think that the United States will as well. In short, this should set up for a range and at this point I think that’s what the market is trying to do, build some type of range.

EUR/USD Video 16.03.20

If that’s going to be the case, I think we will settle down with 1.10 be in the bottom, and 1.15 being the top. In that scenario, we are looking at a lot of real estate that the pair will be covering, much more than in the past but in turbulent economic times one would expect that anyway. The biggest trick here is to determine where we go after the weekend. There will almost certainly be a lot of headlines crossing the wires that could lead to a wild open on Monday.