EUR/USD Price Forecast – Euro continues to chop around

The Euro went back and forth during the trading session on Monday, testing the 1.1450 level. I think at this point, the 1.15 level above is an area that has been paid quite a bit of attention to, and of course we have the 200 day EMA that is drifting lower and has offered significant resistance. This is a market that continues to be very choppy in general as there isn’t much in the way of directionality right now that suggests we will continue to see a lot of back-and-forth high-frequency trading.

EUR USD Forecast Video 15.01.19

Because of this, I don’t wish to put a lot of money to work, but if we can break above the 200 day EMA, then we could go much higher. If we can get a daily close above that level, then the market will see a push towards the 1.18 level after that. Ultimately, I think that if we pull back from here there should be plenty of support underneath near the 1.14 handle. If you look at the longer-term charts, you can see that we have formed a bit of a “rounded bottom”. This of course is a very bullish pattern, but it is also a pattern that takes quite some time to work itself out. That being said, I think that the shift in sentiment from the Federal Reserve will continue to try to lift this pair, but at the same time there is so much noise in so much trouble in the European Union that the Euro can take advantage.