EUR/USD Price Forecast – Euro Continues Consolidation

The Euro tried to rally on Tuesday but gave back the gains at 1.18. Of course it is a significant resistance barrier, just as the 1.17 level is support.
The Euro initially tried to rally during the trading session on Tuesday but gave back the gains at the 1.18 level. By giving back the gains, it shows signs that we are perhaps getting a bit overdone to the upside, so ultimately this is a sideways marketplace that is trying to figure out whether or not it is going to consolidate, or if it is going to pull back significantly to find value. I would prefer to see some type of break down here because I am much more interested in buying value on any type of dip. Ultimately, this is a market that I think we will see value hunters coming back into.

EUR/USD Video 05.08.20If we can break above the 1.18 level, it is likely that the market could then go to the 1.19 level, but I would much prefer to see consolidation or perhaps even the pullback towards 1.15 that would make this a “huge opportunity.” This is a market that I think will continue to see a lot of choppiness, because this is based upon the Federal Reserve flooding the market with US dollars. If the US dollar continues to lose value, then the Euro will be the natural benefactor at that point. However, if we were to break down below the 1.17 level, I think that there should be plenty of buyers at the 1.15 handle and I think it would be a nice continuation of the longer-term uptrend. All things being equal, I am a buyer but am not very comfortable buying a blow off top type of move right here.