EUR/USD Price Forecast – Euro continues to soften

The Euro has fallen a bit during the trading session on Friday, reaching down towards the 1.13 level again. That’s an area that has been supportive, but I think that if we break down below there it’s likely that the market goes down to the 1.12 handle, eventually the 1.10 level. Rallies at this point would also invite more selling, because the US dollar has the Federal Reserve behind it raising interest rates. Overall, I think that the Euro continues to have a lot of issues as we worry about the Italian debt situation and of course overall global growth.

EURUSD analysis Video 12.11.18

I believe that we will eventually break down below the 1.13 level based upon the fact that we could not break above the 1.15 handle. It’s going to be choppy, but that’s nothing new as this pair attracts a lot of high-frequency traders. The 200 day moving average has acted as major resistance at the 1.18 handle, and we have fallen rather significantly from there. I don’t necessarily expect a meltdown, but it certainly seems as if the path of least resistance is lower, so there’s no point in arguing. While I do anticipate that we could see a bit of a bounce from the 1.13 level, I think that the 1.15 level above is probably going to be very difficult to take out and break higher from. Look for short-term rallies that show signs of exhaustion to start selling again, for little bits and pieces in this market is probably how I’m going to look at this market.