EUR/USD Price Forecast – Euro Continues To Find ResistanceThe Euro continues to find plenty of resistance near the 61.8% Fibonacci retracement level from the bigger move, and of course the downtrend line that I have marked on the chart. The 1.12 level is psychologically important as well, and we have seen a bit of a push back from there.
The EUR/USD pair continues to chop around, reaching towards the 1.12 level to turn things around and show signs of exhaustion. By doing so, it looks as if we may try to stay within this range but if we break above this downtrend line, meaning clearing the 1.1250 level, then it’s likely that the market will continue to march much higher, changing the overall attitude and trend of the Euro. Remember though, no matter what happens it’s going to be choppy and noisy, which is the natural state of this currency pair.
EUR/USD Video 16.12.19
Looking at the chart, it should also be noted that we are trying to break above the 200 day EMA, so if we can make that stick it will be a good sign. Another thing that has helped of the Euro during the trading session is that retail sales in the United States came out much softer than anticipated, which of course has most traders concerned about the health of the consumer. Consumption is 70% of the economy in the United States, so the US dollar to get on the chin shortly afterwards. Having said that, there is now a Chinese press conference to worry about, so the markets really at this point don’t know what to do. All things being equal, it looks as if we could try to pullback from here and into the previous consolidation. Because of this, we are more than likely going to see more noise and difficult trading conditions.
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