EUR/USD Price Forecast – Euro Rallies Towards 50 Day EMA Again

The Euro has rallied significantly during the trading session on Wednesday but gave back quite a bit of gains at the 50 day EMA yet again. This is a market that continues to struggle with the 1.09 level, an area that causes a lot of irritation. Ultimately, the market looks as if it is going to continue to be very noisy, but overall, this market is most certainly in a downtrend, and that should be the way to look at it. I like fading short-term rallies as this market certainly will continue to look at the Euro as something that is going to struggle in general. Ultimately, the market has a massive amount of support down at the 1.0750 level underneath, which of course is a massive support level.

EUR/USD Video 14.05.20

If we can break down below the 1.0750 level, then the market is likely to go down to the 1.0650 level. At this point, the market then has to make a decision as to whether or not it is going to make a move to the 1.05 handle. Breaking down below there would collapse the Euro completely, and things could get rather ugly. Quite frankly, the Euro breaking down below the 1.05 level could open up the door to the 0.80 level based upon the previous basket of currencies being waited the same way before the Euro era. To the upside, I am not interested in buying until we break above the 200 day EMA at the very least, which is currently just above the 1.10 level.