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Christopher Lewis
EUR/USD daily chart, March 14, 2019

The Euro rallied again on Wednesday, reaching towards the 1.13 level again. This is an area that has been important a couple of times in the past, and of course is a large, round, psychologically significant figure. Beyond that, the area is where we started the selloff after the ECB press conference when it was suggested that it was at least a year away from tightening. That of course is negative for the currency, so the fact that we have recovered almost all of that selloff is indeed a relatively positive sign.

Euro to Dollar Forecast Video 14.03.19

If we can break above the 1.13 level, then it’s very likely that the market is going to continue to go even higher. At that point, I would anticipate that the market would probably go towards the top of the overall consolidation area that extends towards the 1.15 level. I believe at this point it is very likely that we find sellers. Remember, both central banks are relatively loose with their monetary policy, so there’s no reason to believe that one is going to outperform the other.

That simply means that we are going to continue the overall consolidation, which is my main thesis. We are closer to the bottom, so I like buying dips on short-term charts to pick up little bits and pieces. I’m not looking for major moves, simply a continuation of the overall malaise that we had been in previously, sticking with the 300 point range that has been so prominent in this pair for several months.

Please let us know what you think in the comments below

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