EUR/USD Forecast June 16, 2017, Technical Analysis

EUR/USD daily chart, June 16, 2017

The EUR/USD pair initially tried to rally at the open on Thursday, but then broke down significantly, slicing below the 1.12 handle during the day. As I record this, the market looks as if it is trying to reach towards the 1.11 handle underneath, which of course signifies further weakness. I believe that the pair is probably going to go looking for more significant support near the 1.10 level, which of course is a more significant support level. I think that selling rallies on short-term charts will probably be the way most traders deal with this market. This is a market that continues to see massive amounts of volatility, as the market continues to deal with the interest rate expectations coming out the Federal Reserve, which of course shot the markets yesterday as they anticipate hanging on to the original plan, which of course is bullish for the US dollar.

Selling short-term rallies

I believe the selling short-term rallies is probably going to be the easiest way to trade this market, at least for the short term. I believe that the 1.1225 level being broken to the upside should be a sign that the trend is going back to the upside, but I don’t see that happening right now, at least not in the short term. Ultimately, the market will continue to be volatile no matter what happens, and therefore short-term opportunities are probably about all you’re going to see if you see anything at all. Because of this, caution will be needed, and precision sizes should be kept small. I suspect that the next week is going to be very difficult. The volatility has been extreme, but I cannot help but notice that the sellers have been more aggressive than the buyers over the last several sessions.

Written by FX Empire