EUR/USD Price Forecast – Euro consolidates

The Euro went back and forth during the trading session early on Wednesday, as we await the Federal Reserve meeting minutes. Beyond that, we also have the US/China trade relations discussions going on, and that of course will affect what’s going on with the dollar itself.
Christopher Lewis
EUR/USD daily chart, February 21, 2019

The Euro went back and forth during the trading session on Wednesday near the 1.1350 level, as we continue to see a lot of interest in that area. After the bullish candle that we formed for the Tuesday session though, I do think that there are plenty of buyers underneath, especially considering that it is a consolidation area that has been proven more than once. I believe that the support runs all the way down to the 1.12 level, which coincides nicely with the 61.8% Fibonacci retracement level as well. With all of that in mind, I am bullish in the short term, but I also recognize that the market has a lot of resistance above. Because of this, I think that the move is probably somewhat limited.

Euro to Dollar Forecast Video 21.02.19

To the upside, the 1.15 level is a bit of a ceiling in the short term, but overall I think that we are trying to form a larger base for a larger move. It could be a longer-term move to much higher levels, but obviously we need to see some type of catalyst to break out to the upside. I believe that underneath there is far too much in the way of support to continue going lower, especially considering that the Federal Reserve seems to be so soft. At this point, a short-term buying on the dips attitude should be employed, as it seems to be working over the last several days. The risk to reward ratio certainly favors buyers.

Please let us know what you think in the comments below

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

Top Promotions

Top Brokers

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.