EUR/USD Price Forecast – Euro testing major support againThe Euro continues to bounce around the physical and psychologically important 1.12 handle. This is a market that continues to bounce around in a larger consolidation area, so therefore we should be paying attention to the outer ranges.
The Euro has fallen rather hard during trading on Thursday, as we are reaching towards the crucial 1.12 handle. This is an area that has been very supportive recently, and currently it looks as if we are trying to find some type of footing. This is the bottom of a 300 point range that we have been trading in for some time, so it’s very likely that we will see a bit of interest down at this area. The last couple of days certainly has shown that, so the question is whether or not we can hold?
EURUSD analysis Video 05.04.19
If we break down below the 1.1150 level, then it would be an obvious break of major support. The 61.8% Fibonacci retracement level also lives in this area, so you should pay attention to it. We have most certainly been very negative as of late, but if you look at the chart we had recently slammed into this area and then bounce straight back up. So that’s the thing here: we’ve seen this movie before. Shorting at this point would be foolish to say the least, as the real risk is probably to the upside.
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As we are in the business of taking on risk, you need to look at the probable outcomes. At this point, it looks as if the area is crucial enough to warrant putting some money into the market and seeing whether or not it holds. The downside is roughly 50 pips, while the upside is closer to the 300. That being said, it’s not necessarily going to be the easiest trade to take.
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