EUR/USD Price Forecast – Euro slams into major support

The Euro slam directly into the 1.11 handle, an area that should be supportive based upon recent action, and so far seems to be holding. That being the case, there is a significant amount of noise just below the 1.11 handle down to the 1.10 level so it seems very unlikely that we get a major breakdown. We also have the Federal Reserve on the other side of the equation, which is very likely to cut interest rates going forward so at this point I believe that we are going to get a bit of a bounce and continue in the same range that we have been in.

EURUSD analysis Video 26.07.19

All things being equal, this is a pair that is extraordinarily choppy, and it should be pointed out that most of the losses during the day were directly between the interest rate announcement and the press conference, perhaps people trying to get rid of positions were “bet” which direction Mario Draghi would lead the market. While central banks around the world are trying to soften their own currencies, the reality is that the Federal Reserve will get its way given enough time. All things being equal this pair should rally, but I wouldn’t look for a major break out anytime soon. The choppiness of this market continues going forward, as is the norm. I believe at this point the 1.12 level will be resistance, followed by the 1.13 level and so on. To the downside, I would look for some type of supportive candle stick if we do break down below 1.11 as a buying opportunity.