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.

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