EUR/USD Price Forecast – Euro treads water

The Euro has fallen a bit during the trading session on Friday only to turn around and show signs of strength. At this point, we are simply stabilizing and that’s probably what we need to see as the market continues to test the crucial 1.11 handle underneath for support. That’s an area that should be important, as it has been supportive in the past. I think at this point we are going to start focusing on the Federal Reserve, and what it’s going to do next. People are expecting interest rate cuts so that should help the Euro in theory, but the question now is whether or not the statement is going to be dovish enough to continue to work against the US dollar. I believe at this point it’s obvious that the Federal Reserve is going to do whatever it is Wall Street wants, which is obviously more cheap money. With that in mind, I am bullish of this pair but I also recognize that it’s probably somewhat limited.

EUR/USD Video 29.07.19

To the upside I suspect that we will probably target the 1.12 level, which is an area that was previous support. It should now be resistance, and I think we may simply move around in a 100 point range as we had been doing previously, as the central banks that are behind both of these currencies will continue to cause issues with both currencies. Both of the central banks are looking to be very easy and soft with monetary policy, so it’s not a huge surprise that choppiness continues to be an issue.

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