EUR/USD Price Forecast – Euro takes off to the upside

The Euro rally kicked off the week, reaching towards the 1.12 level. However, this is a market that had previously seen a lot of support there, and I think at this point it should be massive resistance. With that being the case, it’s very likely that the market will probably continue to see sellers in that area, and I believe that the upward momentum will probably be quelled rather soon. Beyond that, we also have the 50 day EMA in that general vicinity so it does make sense that we would pull back a little bit. A simple chop back and forth is typical behavior for this pair, and all things being equal, we are in a downtrend anyway.

EUR USD Forecast Video 06.08.19

The candle stick from Friday was rather bullish in the sense that it was a nice-looking hammer, but at this point in time I think we are simply going to continue to grind lower as the ECB is stuck with a whole host of problems. While the Federal Reserve has cut rates, it’s not exactly clear whether or not we are going to see a whole handful of other rate cuts going forward. Beyond that, the ECB has to deal with a softening German economy, and perhaps even more concerning is the idea that the United Kingdom could very well leave the European Union in a huge mess. With that, there is simply far too much in the way of concern out there to think that the Euro is going to be thought of as a place to store your wealth.

Please let us know what you think in the comments below