EUR/USD Forecast June 9, 2017, Technical Analysis

The Thursday session was very interesting in the EUR/USD pair, as we fell significantly, reaching towards the 1.12 level. However, as we go into the later part of the day, looks as if the buyers are trying to return and therefore we could see support at the 1.12 level hold. With this, and if we are above that level, I’m willing to buy this market as I think we will go towards the 1.13 level above, and then eventually reach towards the 1.15 level which is the top of the longer-term consolidation area that we have been in for the last 3 years. The volatility continues to be very choppy, but ultimately the market looks very likely to offer plenty of trading opportunities on short-term charts.
Consolidation
I believe that the consolidation holds for a while, as we try to figure out what happens next. The EUR/USD pair has seen quite a few headlines over the last several days, and I think that will continue to be the case as we figure out how the European Union will hold together and of course perhaps get away from quantitative easing. The market will more than likely pay attention headlines coming out of the United Kingdom in relation to the European Union as well, so I think that short-term trading is probably about as good as this market will get for most of you. Longer-term “buy-and-hold” is difficult, but I do think there is a precedence for the longer-term consolidation to hold, and that should offer comfort for those of you who can trade longer-term, and perhaps one solution to that issue will be trading and smaller positions. Ultimately, I don’t see much changing so I think you will have to trade to your strengths, assuming you know them.