EUR/USD Price Forecast – Euro breaks through vital level
The Euro has broken down during the trading session on Thursday as we continue to see a lot of negativity. I believe that the market will probably continue to see a lot of volatility, but I think that the market is almost hell-bent on reaching down towards the 1.15 level now. This is an area that had been massive support in the past, so I think that we will probably find quite a bit of buying pressure in that area. The question now is whether or not we can break down below it? If we did, that would be a catastrophic sign for the Euro.
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The alternate scenario is that we rally from here and recapture the 1.16 level, something that is certainly possible. If we do that, and I would define that as moving above the 1.1660 level, then I think that we could rally. We are still in overall consolidation with the 1.15 level underneath being the floor, and the 1.1850 level above being the ceiling of the consolidation that we are stuck in. I think we will stay in this range over the next several days, if not weeks as we are in the middle of summer, and a lot of the large traders around the world are away from the desk. Beyond that, we have a lot of drama involving the Brexit, which has made trading very difficult and noisy for quite some time in this pair in the GBP/USD pair.