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EUR/USD Price Forecast – Euro rallied significant during Friday session

By:
Christopher Lewis
Updated: Jun 23, 2018, 05:23 UTC

The Euro has had a very bullish session on Friday, breaking above the 1.16 level significantly, and it looks as if the market continues to trying to recover from the mass selloff that we have seen after the ECB suggested that it was at least a year away from hiking interest rates.

EUR/USD daily chart, June 25, 2018

The EUR/USD pair rallied a bit during the trading session on Friday, breaking above the 1.1650 level, and even reaching towards 1.17 level. We started to pull back a little bit but found enough buyers underneath to continue to push this market higher. I believe that the market should continue to be driven by several different factors, not the least of which will be geopolitical concerns, and of course trade war fears. That has worked against the US dollar and in favor of the Euro lately, so it’s likely that we will continue to see that dynamic play out. Beyond that, I wonder whether the market overreacted to the ECB statement?

At this point, we have broken above the last vestiges of serious resistance on the hourly chart, so it’s possible that we should continue to see short-term traders buying the dips. I think that the market could go looking towards the 1.18 level above, which is the scene of the major break down. That’s not to say that this is going to be an easy thing to do, but the technical analysis suggests that perhaps this is what we are about to see. Don’t worry though, there will be plenty of volatility due to the trade fears around the world, so it’s likely that the market participants will be quick to take profits and would be skittish when it comes to the noise that the market will undoubtedly feature.

EUR/USD Video 25.06.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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