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EUR/USD Price Forecast – Euro finds a bottom

By:
Christopher Lewis
Updated: Mar 8, 2019, 18:37 UTC

The Euro initially fell rather hard during trading on Thursday, breaking below the vital 1.12 level. However, we found enough support underneath there to turn things around and bounce significantly. That being the case, the market looks as if it is finding significant strength.

EUR/USD daily chart, March 11, 2019

The Euro initially was very soft over the last 24 hours, but then broke above the 1.12 handle. This is a market that has been consolidating between the 1.12 level on the bottom and the 1.15 level on the top. This is a market that had previously been very well contained, and with the breaking through of the level, it appeared that the Euro was about to get sunk. Clearly, ECB President Mario Draghi tried to kill it. However, the jobs number came out on Friday and it turned everything back around. Whether or not we can stay within this consolidation area can’t be quantified quite yet, but it clearly looks as if the market is going to try to make that happen. If it does, then we will probably see a move towards 1.13 level, followed by 1.14.

EUR USD Forecast Video 11.03.19

This is a market that it’s difficult to play longer-term trades with, because it is so highly contested by high-frequency trading algorithms. Sometimes, higher traded markets like this tend to be very difficult. Ultimately, this is a market that has a couple of central banks unwilling to step in and become aggressive, so it’s going to continue to be a back and forth between a couple of soft currencies. That being said, if we have some type of global fear situation going on, then it should have the US dollar strengthening. Overall though, I am inclined to think that were going to get a little bit of a rally here.

Please let us know what you think in the comments below

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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