EUR/USD Price Forecast – Euro Runs Into ResistanceThis is a market that has been in a significant range for quite some time and it looks like we are simply ready to confirm that trend more than anything else.
The Euro rallied a bit during the trading session on Tuesday, reaching as high as 1.0975 before pulling back a bit, but as you can see we are likely to remain within the range that we have been in for some time. That means the 1.10 level should hold as resistance, just as the 1.0750 level underneath should hold as support. This makes a bit of sense, considering that this pair has nowhere to be and quite frankly the European Union is economically fragile to say the least. Beyond that, the United States dollar of course is the world’s reserve currency, and therefore it has a bit of built-in demand due to that.
EUR/USD Video 20.05.20
At this point, I fully anticipate that we will probably go looking towards the bottom of the range, and I think it is going to be very choppy on the way down there to say the least. Nonetheless, that has been the pattern for quite some time and unless something changes in a very drastic manner, it seems very unlikely that we are going to see some type of major change in this type of environment, because quite frankly there are just far too many questions to answer before we can do that.
On the other hand, if we do break above the 1.10 level on a significant break out, that could open up the door to the 1.11 handle. Furthermore, if we break down below the 1.0750 level, I think it opens up a potential move down to the 1.0650 level, possibly even the 1.05 level over the longer term.