EUR/USD Forecast June 7, 2017, Technical Analysis

EUR/USD daily chart, June 07, 2017

The EUR/USD pair initially tried to rally during the session on Tuesday, but found enough resistance near the 1.1280 level to turn things back around. We then bounced off the 1.1240 level. The market continues to look very bullish in general, and I believe that we are trying to “front run” the ECB monetary policy statement. If we can break out to the upside, the market should then go looking for the 1.13 level above, and then the 1.15 level over the longer term as it is the top of the recent consolidation that we have seen in this pair for the last couple of years. Ultimately, I think that the market will probably struggle to break above there, but it certainly looks as if the markets are trying everything they can to get to that area to find out whether or not it will hold. Because of this, I believe that buying on the dips continues to be the way going forward, although I would anticipate there will be a lot of noise.

Don’t forget the British are leaving

Don’t forget that the British are leaving the European Union, so there is the possibility that statements could come out to shake up the value of the Euro, but ultimately, I believe the other thing that we will be paying attention to is the possibility of interest rate hikes coming out of the United States, and whether we will have several. I personally think we will, but at this point the only one that seems to be set in stone is the one we should get in the next couple of weeks. Given enough time, I believe that we do breakout to the upside and I also believe that the 1.12 level should be the “floor” in this market.

Written by FX Empire