EUR/USD Price Forecast – Euro fails at major resistance level again

The Euro initially tried to rally during trading on Tuesday but continues to fail near the 1.15 handle. This is an area that of course has a certain amount psychological importance to it, but it also is an area that has structural importance to it. I think that the market is probably going to reach down towards the 1.13 level, and as a result it is only a matter time before the sellers takeover anyway. This is based upon a lot of concerns when it comes to the Italian debt situation, and quite frankly the economic numbers coming out of the European Union.

EUR/USD Forecast Video 21.11.18

Beyond that, the Federal Reserve is raising interest rates and we already know this. In a situation like that, it’s not hard to understand why the overall direction is lower, and why it may continue to be for some time. I believe selling rallies continues to be the way to trade this market, and I also believe that the 1.13 level will of course offer a target as well. I do believe that if we break above the 1.15 handle, then the market could go much higher, perhaps breaking towards 1.16 level followed by the 1.18 level.

I think that we have plenty of issues that will continue to weigh upon risk appetite, and that typically means that the US dollar will strengthen overall, and that of course won’t be any different here. I do believe that we will continue to see plenty of negativity.