Advertisement
Advertisement

EUR/USD Price Forecast – Euro continues to drift

By:
Christopher Lewis
Updated: Jan 16, 2019, 18:39 UTC

The Euro continues to drift during the trading session on Wednesday, falling slightly in early trading. However, there is significant support underneath and it looks as if we continue to try to form some type of “rounded bottom.”

EUR/USD daily chart, January 17, 2019

The Euro fell a bit during the trading session on Wednesday, breaking below the 1.14 level early in trading. However, it’s not exactly breaking down massively, and we did see the 1.14 level bring in fresh buying recently. Beyond that, we are forming a bit of a “rounded bottom”, and although the 200 day EMA push the market back down, the reality is that it was only the first attempt. With this overall general action, I believe that the US dollar will continue to lose against the Euro longer term, unless of course we break down below the 1.13 level which would negate the complete rounded bottom.

Euro to Dollar Forecast Video 17.01.19

Once we get above the 200 day EMA, it’s more likely that we will see a jump into this pair by larger money, as it is a longer-term trade signal. If the Federal Reserve explicitly says that interest rate hikes are not coming, that might be exactly what it’s going to take to get involved for lot of larger funds. While there are a lot of problems in the European Union, and quite frankly I think they are only getting worse, the reality is that the US dollar is driving this pair right now, not the Euro itself.

Ultimately, if we did break down below the 1.13 level, then I think we would revisit the lows, but right now we are still making “higher lows”, which of course is the very epitome of an uptrend being formed. Ultimately, I do like the idea of buying this pair but I also recognize that you’re going to need to be very patient.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

Did you find this article useful?

Advertisement