EUR/USD Price Forecast – Euro breaks out

The Euro broke out during the trading session on Wednesday, slicing through a “neckline” of a very complex inverse head and shoulders that I was talking about yesterday. I think at this point we will more than likely go looking towards the next round figure where I expect a fight.
Christopher Lewis
EUR/USD daily chart, September 21, 2018

The Euro rallied significantly during the trading session on Wednesday, breaking above the neckline of an inverse head and shoulders, which measures for a move to roughly 1.20. However, I think the 1.18 level above is going to cause a significant amount of resistance, so don’t be surprised at all if we need a pullback in the short term. However, I think that the 1.1725 level will now more than likely offer support as this has been such a major and obvious breakout. Overall, I believe that the Euro is going to gain from the lack of focus on European banks, and more focus on the US/China trade relations. Overall, if we can break above the 1.18 level I think that the move to the 1.20 could be rather quick.

The alternate scenario of course is that we turn around and wipe out this break out. That’s always possible, but at this point it looks less likely. The Euro has been very resilient and I don’t see that changing in the short term. Overall, I anticipate dips offering value the people are willing to take advantage of, as the Euro looks ready to take off overall. If we did break down, I think that the 1.1650 level would then offer the next potential buying area, and I currently have no interest in shorting this market at all as I’ve seen so much momentum shift over the last several weeks.

EURUSD analysis Video 21.09.18

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.