EUR/USD Price Forecast – Euro rallies again towards highs

The Euro rallied a bit during the trading session on Friday, reaching towards the 1.15 level above. That’s an area that has been resistive more than once, and therefore it’s not a huge surprise to see that this market can get above there. The 200 day EMA above offers quite a bit of resistance, so if we were to break above there it would be a huge signal to start buying. Overall though, I think that the market will accomplish that, perhaps reaching towards the 1.18 level longer-term. This is a market that is going to continue to be very sloppy and difficult though, as the Federal Reserve has stepped back and kept itself out of the picture.

EUR/USD Video 04.02.19

On the other side of the Atlantic Ocean, we have the ECB in a difficult position as the European Union is starting to post rather negative economic numbers, with Italy entering a technical recession this week. It is because of this that the pair is struggling to pick up momentum, but I do think eventually something happens to push us higher. In the short term, don’t be surprised to see if we pull back a bit, with the 50 day EMA underneath offering support. Quite frankly, this is one of the least interesting Forex pairs to trade right now, but I think we are trying to form a major base to turn the trend around longer term. These tend to take quite some time though.