EUR/USD Price Forecast – Euro Runs Into Massive Resistance

The Euro initially tried to rally during the trading session on Friday, reaching towards the 200 day EMA before pulling back a bit. By doing so, we ended up forming a less than impressive candlestick, but at this point it’s likely that we have gotten a bit too far ahead of ourselves, showing signs of exhaustion during the day. If we can break down below the bottom of the candlestick for the Friday session, it’s possible that the market then drops down to the 1.08 level.

EUR/USD Video 30.03.20

Ultimately, if the market was to break above the top of the candlestick for the trading session on Friday, then it opens up the door for the Euro to go looking towards the 1.12 level. Beyond that, then we could go as high as the 1.15 level, as it was the recent highs. The volatility is going to continue to be a major issue in this market and should continue to be a significant deterrent to getting overly involved. At this point in time, it’s likely that the market will continue to cause headaches, but ultimately keeping your position size smaller will keep you out of trouble.

Ultimately, this is a market that is going back and forth between the idea of the Federal Reserve going massive amounts of quantitative easing, and the European Central Bank releasing previous rules as to how many bonds can be bought. In other words, both central banks are flooding the world with currency, and therefore it should only increase the back-and-forth type of trading that we see here.

This article was originally posted on FX Empire

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