EUR/USD Price Forecast – Euro continues to see support underneath

The Euro pulled back slightly to kick off the session on Wednesday I believe that the market will eventually grind its way higher.
Christopher Lewis
EUR/USD daily chart, January 24, 2019

The Euro pulled back slightly during the trading session on Wednesday but continues to offer support at the trend line that I have marked on the chart. Because of this, I believe that the market will eventually break to the upside but it is going to take a long amount of time to build up the necessary momentum. If we were to break down below the trend line, that would be a very negative sign, perhaps reaching down to the 1.12 level. Otherwise, I think that we will try to make a move towards the 50 day EMA, but once we get above that level we will more than likely go much higher. At that point, the next target would be the 1.15 level, an area that will be difficult to overcome. This will be especially true as the 200 day EMA is just above there.

Euro to Dollar Forecast Video 24.01.19

I believe that this will be very choppy and difficult at times, so keep that in mind. Overall, I do believe that the 61.8% Fibonacci retracement level underneath near the 1.12 level can offer massive support as well. Because of this, I think that if we break down from here it is probably going to be somewhat limited as we are at such major levels on the longer-term charts. Obviously, the ECB meeting during the Thursday session will have a lot of influence on this pair as well, so I would expect a lot of volatility during that press conference, but at this point I still favor the upside in general as we continue to see buyers come back in and try to lift this market, and even as we have gone lower recently, you can see there has been a fight.

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