EUR/USD Price Forecast – Euro rolls over yet again

The Euro initially tried to rally during the trading session on Thursday but gave back quite a bit of the gains to form a bit of negativity. The market is looking very weak at this point, so it’s very likely we will continue to see some of the same action.
Christopher Lewis
EUR/USD daily chart, May 17, 2019

The Euro initially tried to rally during the trading session on Thursday but gave back the gains to form a less than impressive candle mid-day. At this point, we are starting to grind lower and it looks as if we are ready to reach towards the 1.1150 level, possibly even the 1.11 level after that. If we were to break down below that level, then we could go to the 1.10 level.

EURUSD analysis Video 17.05.19

The alternate scenario is that we break out above resistance at the 1.1250 level, which would be the shooting star that formed on Monday. If we were to break that resistance barrier, that could send this market much higher. Overall, this is a market that continues to favor the US dollar due to weaker European figures, and of course a lot of indecision around the world. Beyond that, the US dollar has got a boost considering stock markets going higher in New York and behaving much better than they are around the world as well. Simply put, the United States is where people are investing right now so therefore it brings money into that country. On the occasional negative headline, then they start looking for US treasuries. Those are also priced in US dollars, so it’s a bit of a “double whammy” at this point. Until the rest of the world picks up growth, the US dollar should continue to strengthen overall, and that will of course be shown in this currency pair.

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