EUR/USD Price Forecast – Euro Continues to Test Top of Range

The Euro has rallied rather significantly early during the trading session on Wednesday, but has a lot of resistance just above it, causing major issues for those willing to try to push it higher. Because of this, this is a market that is likely to see a lot of noise in this general vicinity, but most importantly you should be aware the fact that we are clearly getting a bit extended. Having said that, we also have the 200 day EMA just above the 1.10 level, which not only is a major technical and psychological level, but now is being reinforced by the 200 day EMA.

EUR/USD Video 21.05.20

Furthermore, the European Union has a whole host of issues going on at the same time and has to deal with the Brexit, so I do believe that there are a lot of issues when it comes to owning European assets. Furthermore, it is likely that we will see traders run back to the safety of US Treasury sooner or later, as we are getting to the most recent lows, an area that has been defended more than once. Ultimately, this is a market that I think you need to be overly cautious with, but clearly the downside is still what most traders are probably looking at from a longer-term standpoint. Ultimately, I do believe that the Euro will rollover, but it may take some time to happen. After all, it has a long history of chopping around and doing nothing.