EUR/USD Price Forecast – Euro Finding Support During Holiday

The Euro initially fell during the trading session on Monday but bounced enough to form a bit of a hammer by the time the US session started. That being said, the US session was hampered as far as liquidity is concerned due to the fact that Memorial Day was being celebrated in the United States, and of course there were holidays in the United Kingdom, and several other Asian countries. With that in mind, I would not read too much into the candlestick other than to show that the 1.09 level is a magnet for price. This makes quite a bit of sense, considering that the level is essentially halfway between the floor and the ceiling of the consolidation that we have been in for some time.

EUR/USD Video 26.05.20

If we break down below the bottom of the candlestick for the Monday session is highly likely that we then go down to the 1.08 level, possibly even the 1.0750 level. Ultimately, the upside has a significant resistance barrier near the 1.10 level above. Furthermore, just above that 1.10 level is the 200 day EMA, which of course attracts quite a bit of attention in and of itself. Speaking of moving averages, the 50 day EMA is just about in the center of the candlestick for the Monday session, so you can see that we are more than likely going to see quite a bit more choppiness going forward than anything else as there is nothing remotely close to clarity right now when it comes to the economy.

For a look at all of today’s economic events, check out our economic calendar.