Euro falls significantly during the trading session on Tuesday to test major support

The Euro fell significantly during the day on Tuesday as traders continue to worry about the Italian bond markets. I think that it is only a matter of time before we show signs of exhaustion that we can take advantage of, so until then I would be very patient. It makes sense we bounced from the psychologic 1.15 handle, which quite frankly we got too much quicker than anticipated.
Christopher Lewis
EUR/USD daily chart, May 30, 2018
Europe and USA flag on human male hands

The EUR/USD pair has broken down significantly during the trading session on Tuesday, reaching just above the 1.15 level before bouncing rather significantly. There are plenty of resistance barriers above the keep this market going down, and if we can break down below the 1.15 handle, the market should continue to go much lower. I think that the market has been very negative in general, and it makes sense that the fears coming out of Italy will continue to plague the Euro in general. At the same time, we have interest rates rallying in the United States, and that continues to put a lot of bearish pressure in this market. If we were to break down below the 1.15 handle, the market could go down to the 1.13 level after that.

I think we quite frankly need to see a bit of a bounce to build enough momentum to finally break through the 1.15 level, assuming that we do so. However, there are so many negative headwinds coming out of Europe right now that it would not surprise me. I think that the markets continue to be very erratic, but pay attention to the bond markets in Italy, that will probably drive where this goes next. The US dollar should continue to strengthen during most of the summer.

EUR/USD Forecast Video 30.05.18

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US