EUR/USD Forecast May 20, 2016, Technical Analysis

The EUR/USD pair fell initially on Thursday, but bounced enough to form a hammer. The pair is at the bottom of a longer-term consolidation area, as the 1.12 level looks important. The market could bounce from here to the 1.15 level above. With this, the market looks like it is simply content to go back and forth over the next several weeks. The market breaking below the hammer from Thursday would be a sell signal, and we should reach down to the 1.10 level below. Ultimately, expect a lot of volatility in this pair.

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