EUR/USD Price Forecast – Euro runs into brick wall

The Euro has rallied during the trading session on Friday, breaking above the 1.11 handle early during the day. We did of course have the jobs figure come out of the United States and it was exactly as expected at 164,000 jobs added. Ultimately, this is a market that has been beaten down, and has been paying attention to the 1.11 handle in the past. Ultimately, this is a market that has broken through a major support level, and that level in theory at least, should be massive resistance. With that being the case, it makes quite a bit of sense that we would see a lot of interest in this area.

EUR/USD Video 05.08.19

With the hammer that was formed during the previous trading session on Thursday, a breakdown below that level would of course be very negative indeed. At that point, it’s very likely that we would see the market participants out there run for the hills. At that point, I think that the 1.10 level would be targeted, and then of course we would go even lower than that. All things being equal, central banks around the world are very soft and of course the Federal Reserve is perhaps “less soft” than many of the other ones, and that’s essentially what you are seeing play out in this currency pair right now. With that in mind, I believe that we continue to sell short-term rallies and try to drive much lower. All things being equal I remain very bearish going forward.

Please let us know what you think in the comments below