EUR/USD Price Forecast – Euro struggling

The Euro initially rallied during the trading session on Wednesday but gave back quite a bit of the gains as we start to approach the 1.1250 level. That’s an area that I anticipate will cause a lot of problems and therefore it’s not a huge surprise that we started to see sellers. With this being the case it’s likely that we will try to make a move below the 1.12 level, as we are essentially in the “support zone” that made up so much of the previous consolidation area. With that being the case, it’s very likely that exhaustion will set in.

Euro to Dollar Forecast Video 02.05.19

To the downside, I fully anticipate that the 1.1150 level will be tested, and then perhaps the 1.11 handle after that. If we can break down below there then the 1.10 level will come into focus. At that point I would anticipate a lot of support though, because we would be at extremes when it comes to the downside. Beyond that, the 1.10 level has been very supportive and resistive in the past, so it’s hard to imagine that it won’t attract quite a bit of attention. At that point I would anticipate a lot of value hunters coming into the market place in trying to take advantage of cheap euros.

On the other side of the equation, if we can clear the 50 day EMA, pictured in red on the chart, with a daily close, then the market could go towards the 1.14 level above, perhaps even the 1.15 handle.

Please let us know what you think in the comments below