EUR/USD Price Forecast – Euro fails to hang onto gainsThe Euro initially tried to rally during the trading session on Wednesday but has found quite a bit of resistance near the 1.12 EUR level. This is the beginning of major resistance as we have seen over the last several sessions, so this should not be much of a surprise.
The Euro initially tried to rally during the trading session on Wednesday, but then rolled right back over to show signs of exhaustion. That being the case, the market looks as if it is going to break down and go through the bottom of the consolidation region that we had been in. At this point, it opens up the door to the idea of a move to the 1.11 handle. That is an area that had been massive support previously, and the bottom of a major “melt up” candle that had sent this market to this area.
Euro to Dollar Forecast Video 15.08.19
Just above, there is the 50 day EMA which has been major resistance. At this point, I think there are far too many negative reasons to think that the US dollar will sell off, and I think that the treasury markets will continue to show signs of strength. This of course requires US dollars, so this helps this pair break down. Rallies at this point I continue to be selling opportunities, as the area above has caused so many issues. With this, I continue to fade rallies and take advantage of what has been such a tough grind lower.
If we do break down below the 1.11 handle, it’s likely that the area between there and 1.10 will be very choppy, so I guess essentially more of the same. This is a market that is negative, but also very difficult to hang onto larger moves.
Please let us know what you think in the comments below