EUR/USD Price Forecast – Euro bounces on Friday

The Euro has rallied significantly during the day on Friday, perhaps in a bit of a “dead cat bounce”, perhaps even a bit of position squaring coming into the weekend as a lot of traders would have realized great profits on Thursday. I still see a significant amount of support near the 1.15 level underneath, and it’s possible that we could see a bounce that is significant from here. However, the European Central Bank has set the timetable for interest rate hikes further down the road, so I do believe that eventually the sellers come back into this market, perhaps pushing for another attempt at the 1.15 level.

If the market breaks down below the 1.15 handle, the market very well could go much lower. However, I do recognize that this is a very fluid situation, so I will defer to the longer-term charts before putting money to work. We have not broken down below the bottom of the hammer from the weekly chart, so that is a positive sign. I think that overall the market will continue to move on to risk appetite, and of course economic numbers coming out of the US. The hotter they become, the softer this pair will be. I think that overall, what we are seeing on Friday is a simple pull back from an impulsive move to the downside that may have been a bit overdone.