Euro falls slightly during the trading session on Thursday to test support again

The EUR/USD pair has drifted a bit lower during the trading session on Thursday to reach towards the 1.1775 level underneath. I think that level is a bit supportive, but if we make a fresh, new low, the market continues to go even further to the downside. I like the idea of the pair reaching down towards the 1.15 level, as it would wipe out the entirety of the uptrend. I think that if we can rally from here, it’s only a matter time before the sellers get involved.

I think that a breakout above the 1.1850 level sends this market looking for the 1.19 level above, which will be resistive, but I think there’s even more resistance near the 1.20 level above. I think the negativity should continue as interest rates in America are most certainly going to go higher than the European Union in the foreseeable future, so ultimately one of the main drivers of the currency market favors the downside. If we get short-term rallies, look for signs of exhaustion that you can sell as it would represent value in the greenback. Ultimately, I think the greenback is going to have a good summer in general, and I think this pair is going to be one of the most common places to express that view.