EUR/USD Price Forecast – Euro Running Into Resistance

The Euro has rallied significantly during the trading session on Friday but looks as if it is going to run into a bit of trouble at the 1.10 level which of course is a significant round figure that will attract a lot of attention. By fading the Euro here, you have the ability to have a relatively small stop loss, because if it closes above the 1.10 level, we also have the 200 day EMA above that should offer resistance as well. Signs of exhaustion should be jumped on, but the fact that we are rallying towards the end of the weekend does suggest that perhaps this might be a Monday trade.

EUR/USD Video 04.05.20

To the downside, I suspect that the 1.0850 level underneath will be where the market tries to rally, and therefore I like the idea of shorting this pair, but we need to see the US dollar pick up a bit of steam in general. Once it does, this pair will probably rollover. However, the European Union did not extend the tally of monetary policy easing that people had hoped for, so therefore the US dollar is paying the price as the Federal Reserve is trying to burn the US dollar as quickly as possible. That being said, I believe that this market will have to make a fairly significant decision in the next 24 hours, so pay attention as to whether or not we close above the 1.10 level or below it. That should be your clue.