EUR/USD Price Forecast – Euro Continues to Grind Higher
The Euro has rallied significantly during the Thursday session, as we continue to see a lot of volatility in this marketplace. Ultimately, I think that we find a reason to go higher but it may take some time to get there. After all, the market has been extraordinarily bullish for some time, so it should not be a huge surprise that we have seen the market grind sideways for the last couple of weeks, but it looks like we are carving out a very well defined consolidation region. The 1.17 level on the bottom is massively supportive, while the 1.19 level above is massively resistive. Ultimately, we will break out of this range and depending on which direction will determine the destination.
EUR/USD Video 14.08.20
On a breakout above the 1.19 level then I think it is a relatively commonly held belief that the market goes looking towards 1.20 level next as it is a large, round, psychologically significant number that a lot of people will pay close attention to. If we break down below the 1.17 level, then I believe that the market goes looking towards 1.15 handle underneath, which should be massive support as it was the scene of a major breakout. I am not looking to short this market on a breakdown below the 1.17 level, rather I would be willing to buy it down at the 1.15 level as it is value at this point. Furthermore, the 50 day EMA sits just below it, so I think it is a good shot that buyers would jump in based upon technical analysis if nothing else.
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This article was originally posted on FX Empire
