EUR/USD Price Forecast – Euro rallies to close out the week

The Euro has been somewhat noisy during the session, but in a good way. The market had beaten this currency down but it seems like fears about the Turkish lira and contagion are starting to drop off a bit. That’s a good sign, and it seems as if the attitudes of traders around the world is the step back a bit. Don’t get me wrong, this is a market that is still in a lot of trouble but the last couple of days have been a much-needed reprieve.

When you look at the longer-term charts, the bottom of the hammer, the 1.13 region, dug into massive longer-term support. If that holds, this could end up being a great buying opportunity for the Euro, but even if that turns out to be true it’s not going to be the easiest trade. If we break down below the 1.13 level, the 1.12 level is all but assured. Currently, I think that this market remains the domain of short-term traders, as the latest headlines coming out of Ankara will continue to cause issues as well. I think that the US dollar is overbought in general, so we could see that as yet another catalyst for a pop to the 1.15 handle. I suspect more than anything else, we are going to see volatility, and of course the latest tweet from President Trump could change everything, if he starts talking about tariffs against the EU again. While I am not ready to be longer-term bullish of the Euro, a bounce is probably needed.

EUR/USD Video 20.08.18