EUR/USD Price Forecast – Euro continues the bounce around 1.13

The Euro has tried to rally during the trading session on Thursday but gave back quite a bit of the gains near the 1.1350 level to rollover and break below the 1.13 level again. This market continues to be thrown around due to the Brexit and all of the conflicting headlines, it of course the Italian debt situation that has been front and foremost in the minds of traders. Ultimately, this is a market that is still focusing on the fact that the Federal Reserve is going to raise interest rates while the European Central Bank will be able to do so anytime soon.

Euro to Dollar Forecast Video 16.11.18

In fact, there is even possible stimulus coming out of Brussels in the near term, and the economic figures in the EU certainly haven’t been supportive of a tight monetary policy. The Federal Reserve is basically the only central bank in the world looking to raise interest rates, so it makes sense of the US dollar would continue to strengthen. Slower global demand and growth is going to be an issue as well, so expect that this pair will probably continue to favor the greenback. In general, I think that selling rallies will continue to work in this market, but I’m not looking for some type of meltdown, just a continuation of the overall grind lower, perhaps down to the 1.11 level which was massively supportive on longer-term charts in the past. If we were to break down below there, it would get very interesting very quickly. Rallies at this point won’t be able to break above 1.15 anytime soon.