EUR/USD Price Forecast – Euro recovers on Friday

The Euro bounce significantly from the 1.13 level during trading on Friday, repudiating the selling pressure that we had seen on Thursday. Now that we have broken back above the top of the uptrend line, if we can stay appear that would be very bullish sign as it would form a hammer for the week. Beyond that, the Federal Reserve is looking somewhat neutral, and if that’s going to be the case it’s likely that there will be a little bit of a bid to this pair, despite all of the negativity coming out of the European Union.

EUR/USD Video 28.01.19

Underneath, the 61.8% Fibonacci retracement level is at roughly 1.12, so at this point I think that’s still the “hard floor” in the market. I do believe that we are trying to change the trend, and these moves are typically quite messy. That being said, it certainly is striking just how resilient the Euro is overall. After the very dovish press conference given by the ECB during the Thursday session, the Euro by all means should have broken down significantly. While we did break the downtrend line, we stopped at the 1.13 level, an area that’s been supportive more than once. At this point, I do believe that if you are a longer-term trader buying the Euro probably will still be the way to go, but you need to think long term as short-term trading is going to continue to be very noisy, and very choppy to say the least.