The Euro fell a bit during the trading session on Tuesday as we continue to bounce around in a 100 point range that I have been watching. To the upside, the 1.12 level is resistance and I think it extends all the way to the 1.1250 level. Overall, I think this is a market that continues to find a lot of pressure above that will keep it somewhat negative.
EUR/USD Forecast Video 22.05.19
To the downside, we certainly have a lot of support at the 1.11 handle, so I think that as long as we can stay above there it’s very likely that we will continue to see more of a back-and-forth short-term trading type of environment. However, if we were to break down below the 1.11 handle it’s very likely that we would accelerate the selling and reach down towards the 1.10 level.
The US dollar is strengthening due to a lot of different reasons, not the least of which would be a lot of concern around the world when it comes to global growth and of course the trade war. Although the European economy seems to be bottoming a bit after a rough spell, the reality is that there are so many uncertainties out there that people really can’t get behind a “risk on” move for the longer-term. That essentially means that the US dollar will continue to attract a lot of attention, especially considering that overall the treasury markets have been so bullish.
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This article was originally posted on FX Empire
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