EUR/USD Price Forecast – Euro bounces during early Tuesday session

The Euro rallied a bit during the trading session on Tuesday, bouncing towards the 1.3 level which of course had been major support. That’s an area that should be resistance going forward, and even if we break above there I think there is high likelihood that we will see a lot of resistance extending all the way to the 1.15 handle. At this point, I think that the market will continue to focus on the interest rates going higher in the United States and of course the Italian debt situation. Beyond that, European economic numbers have gotten worse as of late, and it’s likely that will continue to be the trend.

EUR/USD Forecast Video 14.11.18

At this point, I think it’s a matter of simply sitting around and waiting for signs of exhaustion that you can take advantage of. Once you get that sign, perhaps on the short-term charts, you can start selling again as I think the major support underneath is probably found closer to the 1.11 handle which is a major turnaround spot on the weekly chart. We are in a downtrend and the 1.13 level was crucial to hold. Since it didn’t, this marks a new leg to the downside.

In fact, it’s not until we break above the 1.15 level that I would be convinced that we are trying to turn things around. That could send the market towards 1.18 level but obviously we would need to see some type of major difference in the economic outlook.