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EUR/USD Price Forecast – Euro Stalling After Parabolic Move

By:
Christopher Lewis
Published: Jun 5, 2020, 14:10 UTC

The Euro has dropped a little bit during the trading session on Friday after initially shooting straight up in the area again.

EUR/USD

The Euro has shot straight up in the air to kick off the trading session yet again on Friday, but with the jobs number coming out better than anticipated the United States, it looks like perhaps some people may need to pick up dollars to buy equities. At this point, the Euro is overextended, so at this point there is most certainly more risk to the downside than there is up. This is not to say that we cannot go higher, just that it is much easier to drop from here than it is to buy after the massive move that we have seen.

EUR/USD Video 08.06.20

Looking at the candlestick, it will be interesting to see how this closes, but at this point it is exceedingly difficult to go long a market that has already lifted 400 pips. Because of this, I have the sneaking suspicion that we are about to see a massive breakdown like we had seen in this market back in February.

Ultimately, the market is going to have to give some of these gains back, if for no other reason there will be people out there willing to take profits. I would be overly concerned about buying the Euro up here, even though I do not necessarily look to short it unless of course I get some type of negative signal. At this point, we need to let the market settle down before putting any money to work due to the fact that things could get rather ugly in one direction or the other.

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

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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