EUR/USD Price Forecast – euro pulls back slightly during Thursday session
The EUR/USD pair pulled back during early trading on Thursday but seems to be finding a bit of support near the 1.1650 level, and almost certainly will find it at the 1.16 level as well. I believe at this point, the market is very likely to find reasons to rally given enough time, especially considering that trade deals are starting to be inked in North America, and that generally puts a “risk on” attitude to the marketplace. Also, I think the Turkish contagion issue has basically been put on the back burner, people don’t seem to be as fearful of it right now, and that of course helps the Euro if by a no other means than a bit of a “relief rally.”
The market has been a bit jittery as of late, but I still think that we are going to go looking towards the 1.18 level above, which is the top of the larger consolidation area that we have recently reentered. If we can break above that level, and perhaps even the 1.1850 level, then I think the Euro has the ability to reach towards the 1.20 level above. That’s an area that should continue to be very interesting to follow as it has been so crucial on longer-term charts.
The other part of the equation is the US dollar in general, and I think we are starting to see a little bit of a reprieve in US dollar strength, as commodity prices start to rise, as well as some of the emerging market currencies that had been so obliterated as of late.