EUR/USD Price Forecast – Euro continues to bounce around

The Euro has been a bit noisy during trading on Tuesday, as we broke down towards the 1.14 handle, an area that found buyers. We have been forming a bit of a “rounded bottom” over the last several months though, so I think there is some serious bullish pressure underneath. On the other side of the equation, we have the 200 day EMA that has offered selling pressure which is currently somewhere near the 1.1550 level.

EUR/USD Forecast Video 16.01.19

The biggest problem with trading this pair is that the Federal Reserve has suddenly become a bit more dovish, while the ECB has talked about stepping away from asset purchases. However, at the same time we have very weak numbers coming out of the European Union, while the American economy seems to be relatively strong. In other words, there are a multitude of back and forth catalysts in this market. I think you will continue to see a lot of choppiness and indecision in this market, because quite frankly there’s nothing to be done at this point. I think that the market will eventually test the 200 day EMA again, but quite frankly I can’t be bothered to put any serious money to work in this market.

The rounded bottom is of course a good technical pattern, but it tends to take ages to actually come to fruition. That being said, if we can break above the 200 day EMA that will signify a bit of a trend change in this pair.