EUR/USD Forecast: May 2019

The Euro has been grinding lower against the US dollar for some time now. To be honest, I am a bit surprise that we managed to break below the 1.12 level as it look like it was going to hold. This is because I see so much in the way of support extending down below, and as shown by the red line on the chart. I think at this point we may still be in the middle of a bottoming process, but it’s not until we break above the 1.13 level that I feel that much in the way of confidence will be expressed with the Euro.

We are starting to see the possibility of a significant economic slowdown globally, and that typically helps the US dollar as people park money and US treasuries. Beyond that, we have a lot of issues economically and Europe, although things are starting to finally improve there. I think this is going to be a long and slow drawn out process, so I believe that this month will be very choppy to say the least. If we did break down below the 1.10 level, we could really start to break down drastically but I think that will end up being far too much to get through without some type of financial disaster.

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To the upside, we could see this market try to reach the 1.13 level, and then possibly even the 1.14 handle. I do not expect to break out during the month of May though, quite frankly I expect a lot of sleepy and choppy trading. We obviously have more of a downward bias, but in all actuality it isn’t exactly strong. This looks like a downtrend that starting to run out of steam but isn’t quite ready to turn around. If that’s the case, this is going to be a short-term range bound market.

EUR/USD Forecast

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.