EUR/USD Price Forecast – Euro pulls back only to find buyers

The Euro rallied after initially pulling back during the day on Wednesday, reaching towards the 1.1650 level. However, as better than anticipated GDP numbers came out of the United States, this put a little bit of a “risk on” attitude into the markets, meaning that the greenback got sold off. The first place people do that is against the Euro, so it makes sense that the “50” held. Market participants will probably look at this as an opportunity to pick up a little bit of value as we had gotten ahead of ourselves in this market. However, I think that the marketplace is hell-bent on testing the top of the consolidation area, in the form of the 1.18 handle and extending to the 1.1850 level after that. Overall, I think this market will continue to rally longer-term.

This will be especially true if we continue to get good economic news coming from around the world, and of course trade agreements as it will help the risk appetite of most participants. Overall, I believe that the market continues to be jittery, but does favor the upside as we have seen recently. By breaking above the 1.15 level recently, the market showed its proclivity to go higher and reentering this consolidation area for me was a very strong sign. The question now is whether or not the Euro has made a bottom. At this point, I’d be inclined to say yes.

Euro to Dollar Forecast Video