EUR/USD Price Forecast – Euro continues to test

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Updated: Sep 20, 2018, 03:50 UTC

You can make a real argument for the Euro testing the neckline of an inverse head and shoulders near the 1.17 handle, and it certainly looks as if that area continues to give us a lot of resistance. However, I think it’s obvious that the buyers certainly are becoming a bit more aggressive. I also see a lot of noise above, so this is going to be a tough couple of weeks.

The EUR/USD pair continues to try to rally above the neckline of an inverse head and shoulders that I see on the daily charts, which is roughly centered and the 1.1720 level. The pattern is somewhat complex, so I’m not quite ready to throw a lot of money at it, but certainly at this point it looks like we are going to contain the market within a “buy on the dips” type of scenario. I think the US dollar starting to get punished for the trade war, but at the end of the day why something happened is much less important than the fact that it did.

It looks as if the 1.1650 level is finding plenty of bids, while the 1.1720 level has plenty of offers. If we do break down below the support level, then I anticipate that the buyers will show back up near the 1.1625 handle, and then of course the 1.16 level. Further complicating the scenario is that the market has also been consolidating overall between 1.15 and 1.18 for some time. Because of this, expect a lot of volatility but I do think that the buyers are eventually going to get their way. Of course, anything can happen and of course a headline could across the wires involving European banks again, but until then I think this pair will tried to rally.

Euro to Dollar Forecast Video 20.09.18

About the Author

Christopher Lewisauthor

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.