EUR/USD Price Forecast – Euro testing major support yet again

The Euro has shown itself to be weak yet again, as we broke through the 1.12 level and tested the support level closer towards the 1.1175 handle. The last couple of days have been very bearish, and as you can see the lows continue to test the same area. The question now is whether or not it will break down? My experience tells me that sooner or later we probably will. After all, areas like this can only be tested so many times before something has to get resolved. All things being equal it’s going to be more likely to break down than to shoot to the upside. However I would need to see a daily close below the 1.1150 level in order to feel comfortable.

Euro to Dollar Forecast Video 25.04.19

To the other side, if we were to break above the 1.1325 handle, which is the most recent high, then I could be a buyer. Even though a bounce from here is very feasible or possible, I suspect that the bounce will probably just end up being another selling opportunity unless we get more strength out of the European Union overall, which has shown serious weakness. Beyond that, the ECB is still very loose with its monetary policy, and yes – I know that the Federal Reserve is as well, but the reality is that the ECB is “loser.” Money goes to where growth is, and really the only place we are seeing it with any strength is in the United States. Because of that, the chart makes sense but we are still in the consolidation area I have marked, so keep that in mind. This is certainly a market that you should be paying attention to now.

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This article was originally posted on FX Empire

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