EUR/USD Price Forecast – Euro Recovers After Initial Selloff

The Euro has initially fallen during the trading session on Tuesday but turned around to show signs of life again to break towards the 1.16 level.
The Euro initially fell during the trading session on Tuesday, reaching down towards the 1.1560 level, only to find buyers to push the thing back towards 1.16 level as New York came on board. If we can break above the 1.1625 level, then it is likely that we could go looking towards the 50 day EMA, maybe even the 1.17 level. That being said, this is a good sign that we could looking towards a big “anti-US dollar” move. Looking at this chart, it is looking very much like we have a little bit of a “double bottom”, but at this point it still just a theory. I think if we can get above the 50 day EMA, I would be much more convinced.
The best way to use this pair is still to use it as an indicator on what to do with the US dollar in general. The market will continue to see a lot of noisy behavior, but at the end of the day I think we may be looking at the 1.15 level as a potential “floor the market.” If we break down below that level, then it is likely that we would see a huge move in the US dollar, which would be like a wrecking ball for most of the FX markets, as well as commodities.
The market currently does not look like it is ready to do that, so I think more than anything else we are seeing a lot of choppy behavior going forward of the next couple of weeks, but I always keep an eye on this pair because it can give you a bit of a “heads up” for the greenback.