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EUR/USD Price Forecast – Euro rallies after Powell statement released

By:
Christopher Lewis
Updated: Jul 10, 2019, 15:47 UTC

The Euro rallied significantly during the trading session on Wednesday, as the statement from Jerome Powell was released that was going to be as opening marks in front of Congress. It appears that the Federal Reserve knows that it’s getting ready to cut rates.

EUR/USD daily chart, July 11, 2019

The Euro rallied significantly during the trading session on Wednesday, breaking towards the 50 day EMA. However, we have pulled back just a little bit, but as the question and answer session in front of Congress takes off, it’s very likely that we will get more confirmation and traders will probably continue to buy this market as it looks like we are forming a bit of a “rounded bottom”, which of course is a longer-term signal to the upside.

Euro to Dollar Forecast Video 11.07.19

The 61.8% Fibonacci retracement level coincides quite nicely with the 1.12 level, so that of course is a very bullish sign. By bouncing from there, and at this point showing a larger green candle stick, it looks like money is starting to flow to the upside. By breaking above the shooting star from Monday, that breaks a lot of negative pressure, and a lot of sellers are now trapped. At this point, the 1.13 level will probably be a target of resistance. Breaking above there opens up the door to the 1.1350 level.

As long as we can stay above the 1.12 level, then the thesis of the upside is still intact, and it should continue to be a driver to the upside. Ultimately, as long as we can stay above there I am a buyer of short-term dips. However, if we were to break down below the 1.12 level significantly, then it will open up the possibility of move down to the 1.11 handle underneath which was the “floor” in the market. I do believe longer term we are going much higher.

Please let us know what you think in the comments below

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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