EUR/USD Price Forecast – Euro finding support

The Euro initially pulled back a bit during the trading session on Tuesday but has continued to show support at this very crucial area. It looks as if we are going to continue the longer-term consolidation.
Christopher Lewis
EUR/USD daily chart, February 20, 2019

The Euro initially fell during trading on Tuesday but continues to find buyers underneath to show very supportive action. At this point, it makes sense that the US dollar may struggle to strengthen, because we have a Federal Reserve on the other side of the trade looking very unlikely to get hawkish. The area below and extending down to the 1.12 level as it is obviously an area that is massive support, and the 61.8% Fibonacci retracement level being there helps as well. At this point, I believe that the pair is going to continue the overall consolidation.

EUR/USD Forecast Video 20.02.19

Looking at this chart, it’s obvious that there is a lot of support below at the 1.12 area that extends to the 1.13 level, but I also see just as much in the way of resistance at the 1.15 level above. Ultimately, I do not think that this market breaks out, and I believe that we go back and forth over the next several months, trying to build some type of base for the longer-term move. Most pundits believe that the greenback will soften later this year and I have to concur with this currently. This isn’t a reflection on strength in the European Union, rather a reflection on the Federal Reserve changing its tone and staying dovish, perhaps even cutting rates later this year.

If we can clear the 1.1350 level, the market will probably reach another 100 pips higher, perhaps even as high as the 1.15 level. I suspect we will break out to the upside, but it may be closer to summer time before that happens.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US