EUR/USD Price Forecast – Euro rallies on Thursday after touching major support

The Euro has initially fallen during trading on Thursday, reaching down towards the 1.15 handle. That level had been resistance for a couple of years, and when we finally did break out above there, it was a very bullish sign for the common currency. Now that we have revisited that area, I suspect that longer-term and larger money is sitting right around the 1.15 level trying to accumulate Euros, as they are essentially “cheap” at the moment. However, we always have to look at both sides of the equation and there is the possibility of the break down coming.

If we were to break down below the 1.15 handle, I suspect that we will go looking towards 1.1250 level after that. This is a possibility, even though structurally it looks very strong. The reason I say this is because of all of the issues with the Italian politics, German politics, and of course less than exciting economic numbers coming out of the EU. I think that this chart epitomizes what we will see the rest of the summer, a lot of choppiness around large numbers. If we break above the 1.1650 level, the market should then go looking towards much higher levels, perhaps the 1.1750 level if we do get that move. Otherwise, I would anticipate a lot of consolidation between 1.16 and 1.15 in the meantime as traders try to figure out the longer-term outlook for the Euro in general.

EURUSD analysis Video 22.06.18