EUR/USD Price Forecast – Euro Rallies Hard on Tuesday

The Euro initially pulled back a bit during the trading session on Tuesday, but then shot straight up in the air. At this point, the market is resting just below massive resistance, so it is likely that we will see some type of exhaustion, and therefore I am looking for short-term opportunities to start selling this pair. The Euro of course is going to suffer at the hands of the disarray between the ECB and Germany when it comes to the buying of corporate debt. It seems as if the central banks around the world are going to continue to try to save corporations, which of course is there very function.

EUR/USD Video 13.05.20

With this, both of the central banks are going to be extraordinarily loose with monetary policy, so therefore I think it is going to be difficult to get a sudden surge in one direction or another. At this point, I more than comfortable fading this market, but I am not looking for some type of massive move. I believe that we are essentially killing volatility as per usual in this pair, as the market is one that is not known for making big returns for traders. I do believe that if we break down below the 1.0750 level, then we could go down to the 1.06 level, but it is going to take quite a bit to make that happen. As far as breaking to the upside, I believe that the 1.0950 level will offer a significant amount of selling pressure as well and can be sold into.