EUR/USD Price Forecast – Euro Sluggish

The Euro initially tried to rally during the trading session on Thursday but did end up giving the gains back in order to drift towards the 1.12 level again. This is an area that seems to be rather supportive, and if we can break down below it, it is likely that we will go looking towards the 200 day EMA underneath which is closer to the 1.1050 level. Looking at the chart, I find it interesting that the 50 day EMA has just crossed above the 200 day EMA, which catches the attention of longer-term traders. Furthermore, it also suggests that there is “double support” in that general vicinity.

EUR/USD Video 19.06.20

I think this pair simply got too expensive, so it makes sense that we would pull back from here. After all, this pair tends to chop back and forth and therefore I think we will continue to see pullbacks as being highly likely. Ultimately, I do think that this market will eventually go looking toward support and continue to fill out the overall consolidation that we have seen between the 1.07 level and the 1.14 handle.

All things being equal, this is a market that I think will eventually go looking towards the equilibrium which looks to be right around the 1.10 handle. After all, the European Central Bank continues to do massive amounts of quantitative easing, but then again at the same time the Federal Reserve is doing the same. In other words, it is exceedingly difficult to envision a situation where we suddenly get a massive surge in one direction or another that has any type of staying power.

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