EUR/USD Price Forecast – Euro rallies to kick off week

The Euro has rallied a bit during the trading session on Monday, reaching towards the 1.1375 handle. If we get above that level, it’s likely that the market could continue to go much higher, probably the 1.1450 level being a decent target as it is an area that has been massive, perhaps extending to the 1.15 handle. Overall, short-term pullbacks should be buying opportunities, and I think that the market will continue to look at them as such.

EUR USD Forecast Video 26.02.19

The yellow box underneath at the 1.1250 level has been massive support, so I think at this point it’s very likely that the value hunters will come back into this market on pullbacks, and I will certainly play the market as such. The 61.8% Fibonacci retracement level is just below, so it certainly looks as if the market is going to continue to hold the 1.12 area in general. In fact, you could make an argument that the Euro has bottomed overall, and that we will eventually find a reason to break out to the upside. The US dollar looks to soften later this year, mainly because of the Federal Reserve and its most recent antics.

With Jerome Powell speaking in front of Congress this week, it’s very likely that he’ll say something very dovish that should send the Euro higher. That being said, the biggest problem with the Euro is that it represents the European Union, an area that doesn’t exactly have great economic strength at the moment. Expect choppiness and range bound trading.

Please let us know what you think in the comments below