EUR/USD Price Forecast – Euro rallies towards resistance
The Euro rallied initially during the trading session on Friday, looking towards 1.1350 level, an area that should cause significant resistance. If that’s going to be an area that matters, don’t be surprised at all to see this market pull back a bit from here as not only has it been resistance recently, the 200 day EMA is sitting just above there. The 200 day EMA almost always attracts a certain amount of attention, so don’t be surprised to see the resistance hold, at least for the time being.
EUR/USD Video 24.06.19
That being said, I’m not necessarily looking to short this market, rather I recognize that we are in the process of trying to turn things around due to the Federal Reserve softening its monetary policy. Forex traders are trying to price in a couple of interest rate cuts later this year and that should continue to lift the Euro against the US dollar, even though the ECB has recently suggested more quantitative easing could be coming. At the end of the day, nobody can kill its own currency like the Federal Reserve, so betting against the US dollar will probably be the more profitable route.
The real longer-term signal is going to come on a pullback and whether we make a “higher low” or not. If we do that, then I think the trend is over and we start to go higher from a longer-term standpoint. The alternate scenario is that the resistance doesn’t hold at all, and if we can slice through the 1.1350 level it’s very likely to see the market go looking towards the 1.1450 level.
Please let us know what you think in the comments below