EUR/USD Price Forecast – Euro rallies after agreement

As the European Union has offered a potential solution for the immigration crisis, you can see that the market turned around and exploded to the upside. This is one of the major concerns and the European Union right now, so it makes sense that we may turn back around and continue to find buyers, at least in the short term. However, there is a lot of noise above, and of course there are a lot of concerns as to the health of the EUR overall. I think that if we were to get some type of situation where it appears that the agreement won’t be implemented, then of course we should get an immediate turn around.

Remember that the market favors more of a “risk on” attitude, so if we can continue to find good news, it’s likely that we will continue to go higher. The US dollar of course is a bit of a safety currency, so obviously it’s going to take risk appetite to increase so that the pair can continue to rally. The 1.15 level underneath is a massive support level, and now has been tested yet again. Overall, if we can stay above that level I think that we are more likely to get the occasional bounce from pullbacks. The summer looks very likely to be choppy in this pair, so keep that in mind before you put too much money to work.

EURUSD analysis Video 02.07.18