EUR/USD Price Forecast – Euro Flat

The Euro has done a lot of back-and-forth trading during the session on Monday, as traders are trying to figure out what to do next after the US/China trade talks produce so little. Essentially, we are right where we started.
Christopher Lewis
EUR/USD daily chart, October 15, 2019

The Euro has done very little during the trading session on Monday, as the market is sitting at the 50 day EMA. This is obviously an area that is going to cause some issues, as market participants are looking at both the technical analysis and wondering exactly what just happened in the United States during the talks with the Chinese. Essentially, nothing was settled so it’s difficult to imagine a scenario where it is suddenly a huge “risk on” type of situation.

EUR USD Forecast Video 15.10.19

The Chinese have stated that they wish to talk more before signing the first phase of the agreement, signaling that nothing has changed. Ultimately, that will continue to cause major issues in risk appetite around the world and obviously have an influence on the US dollar as it should strengthen while money flows into the bond markets. On the other hand, this pair also has to deal with the Brexit situation which seems to be a little less optimistic than previously reported. Because of this, it’s likely that we will continue to see a lot of choppy behavior when it comes to this pair, as much like the US/China situation, it comes down to the next rumor or headline that crosses Twitter as to where this pair goes.

Ultimately, we are in a downtrend and that’s probably the easiest way to look at this chart. The 1.11 level above is significant resistance, and although this market has rallied quite nicely over the last couple of sessions, it should be pointed out that the daily candlesticks continue to form long wicks to the upside, and that is something that should not be ignored.

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