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Christopher Lewis
EUR/USD daily chart, January 02, 2019

The Euro continues to struggle at this point, as there is a lot of resistance extending to the 1.15 handle. Unlike the British pound, we did not see a major short covering situation or a liquidity break out, as the New Year’s Eve trading wasn’t as exciting over here. However, I think at this point we are looking at a market that is going to go back and forth and bounce around between the 1.15 level above and the 1.12 level underneath.

EUR USD Forecast Video 02.01.19

The central banks are both starting to tighten in their own ways, but I think at this point there is a lot of confusion out there. At this point, it’s very likely that we will continue to be choppy and sideways as there are so many different issues in the European Union, and of course the Federal Reserve sounding a bit wishy-washy these days. I would not expect much out of this market and I believe that we just go back and forth, in its usual range bound attitude. However, if we were to break above the 1.15 handle, the market could go to the 1.16 level above, possibly even the 1.18 level after that. The alternate scenario of course is that we roll over and go down to the 1.12 handle which has offered so much in the way of support. Expect noise, and don’t look for too much in this market. You could employ some type of stochastic oscillator based short-term system to take advantage of this range.

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