EUR/USD Price Forecast – Euro continues to bounce aroundThe Euro continues to be very difficult to trade, as the market doesn’t know what to do. The 1.13 level seems to be supportive, but at the same time the candle stick from the Monday session suggested more bearishness.
The Euro broke down a bit during the trading session on Tuesday, reaching towards the 1.13 level, which is an area that has been support a couple of times. However, the candle stick from the Monday session was very negative, so I think this shows just how confused and how erratic this market is going to be. Now the domain of high-frequency traders, the EUR/USD pair is naturally choppy and short-term based. Ultimately, this is a market that is waiting to see what’s going to go on with the monetary policy of the ECB, as well as the Federal Reserve. The Federal Reserve is expected to raise interest rates, but now people on Wall Street believe that may not happen as frequency as once thought.
EUR/USD Forecast Video 28.11.18
I believe the easiest trade is to wait for a rally closer to the 1.1450 level, and then simply sell on the first signs of exhaustion. In the short term, I think we are going to go back and forth as we await speeches by Jerome Powell, and of course the G 20 meetings in Argentina this week. I suspect that the next day or two could be rather tight in this market, so I would not expect too much in the way of large trading opportunities.
If we break above the 1.15 handle, then we could go higher, but I think at this point it’s likely that the level will continue to cause issues. That being said, I think that any move lower is going to be slow as we are extended to the downside from a historical perspective.