EUR/USD Price Forecast – Euro choppy during Tuesday session

The Euro has been rather choppy during trading on Tuesday, hanging about the 1.16 level. This is a market that is moving upon Brexit headlines and of course concerns about the Italian debt situation. That’s a situation that has not gone anywhere, and I think at this point it’s only a matter of time before we get some type of market moving event coming from that situation, but currently it looks as if the market is very erratic, so at this point in time I think short-term trading is probably about as good as this gets.

If we can break above the 1.16 level, it’s likely that we could reach towards the 1.17 handle, an area that was important a couple of times in the past. We are technically inside the previous consolidation area, with the 1.15 level offered support, just as the 1.18 level above has offered significant resistance. This is a market that continues to be very noisy but has been rather reliable. Looking at this chart, it’s easy to see that the market has settled into this range and quite frankly this pair can do that for long periods of time.

On one hand, we have the Italian situation. We also have concerns about German electorate, and at this point I think that the Euro is going to have a lot of issues. However, if we get good news out of that then we have to worry about US interest rates driving the value of the US dollar higher. In other words, I would expect a lot of erratic and choppy trading.

EUR/USD Forecast Video 17.10.18