EUR/USD Price Forecast – Euro Searches Towards 50 Day EMA

The Euro has rallied significantly during the trading session on Tuesday, breaking above the 50 day EMA initially during the day and now has its sights set on the 1.10 level. This is an area that I believe is going to cause a lot of trouble, and as we continue to constrict the overall attitude of the market. This is a pair that is typically very choppy and sideways, so it is a bit out of the norm to see it bouncing around the way it has. The 1.10 level is an area that has attract a lot of attention over the longer term anyway, so I do believe that we are more than likely going to see pretty significant resistance in that area.

EUR/USD Video 15.04.20

It is earnings season in the United States and that could throw bit of a risk appetite question into the scenario as well, which of course could have a major run into treasury markets. If that’s going to be the case, then you can expect that this market would roll over and go looking towards the 1.08 level. However, we can always do the opposite and we need to plan accordingly.

If we do break to the upside, I would anticipate that the 200 day EMA would be targeted initially at the 1.1050 area, and then a move above there could open up the possibility of the 1.1150 level next. That being said, I do believe that this market is starting to show signs of momentum slowing.