EUR/USD Forecast June 22, 2017, Technical Analysis

EUR/USD daily chart, June 22, 2017

The EUR/USD pair went sideways initially during the day on Wednesday, but eventually found buyers. I believe that the 1.11 level underneath continues offer bit of support, so it’s possible that we bounce from here and go much higher. I think that the first target would be the 1.12 level after that, and then possibly even as I is the 1.13 level. This market continues to be very volatile, because we have the Federal Reserve looking to raise interest rates rather soon, but things are starting to pick up as far as the European Union is concerned, and that of course will help the EUR itself. I think that there is still more of an upward bias, but it is going to be a very difficult train to hang on to in the meantime as there is so much in the way of headline noise, especially coming out of the United Kingdom leaving the European Union.

Buying on dips possibly

I believe in buying on dips when this market moves, and that being the case it’s likely that the volatility should continue to be an issue, and therefore I think that it’s probably prudent to trade small positions only, and because of this I think that as the trade moves in your direction you could perhaps add to the core position. Ultimately, the market should continue to be volatile as high-frequency trading has taken over, and of course there are so many crosswinds. Quite frankly, I believe that the EUR/USD pair is going to be very difficult to trade this summer. If we do breakdown below the 1.11 handle, I think the market then goes down to the 1.10 level where we would find even more support. Over the last three years, we have been trading between 1.05 and 1.15 in consolidation.

Written by FX Empire