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EUR/USD Price Forecast – Euro continues to struggle to keep gains

By:
Christopher Lewis
Updated: Dec 26, 2018, 16:59 UTC

The Euro rallied a bit at the very beginning of the trading session on Wednesday but rolled over as we continue to see a lot of trouble near the 1.1450 level. That being said, it does look as if we are trying to grind our way higher.

EUR/USD daily chart, December 27, 2018

The Euro fell a bit during the trading session on Wednesday, as we continue to see a lot of resistance near the 1.1450 handle, which of course extends to the 1.15 level. The pair has been very sloppy as of late, and I think it is going to be more of the same. We are currently trading between the 1.1250 level and the 1.1450 level, and I don’t see the market breaking out of their quite yet. However, I would point out that perhaps we are trying to form some type of “rounded bottom”, which is indicative of accumulation.

EUR/USD Forecast Video 27.12.18

The Federal Reserve is suggesting that interest rate hikes work necessarily on auto drive has of course thrown a bit of a monkey wrench into this situation, and I would also point out that the 1.12 level coincides quite nicely with the 61.8% Fibonacci retracement level of the initial breakout, so having a support level at that area makes a lot of sense. I think ultimately, this pair will make a decision but it won’t be until after the new year celebrations are over. The biggest problem here is that we have a Federal Reserve that seems like it’s waffling a bit, but we also have a European Union that is a mess, not to mention the fact that we have the Brexit going on which of course there is a lot of uncertainty into the EU as well. Out of all of the major pairs, this is my least favorite at the moment.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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