EUR/USD Price Forecast – Euro gives up the gains

The Euro rallied a bit during the trading session on Tuesday but gave back all of the gains as we ended up forming a very negative looking candle stick. It looks as if we are trying to break down, but if you squint, you can see a symmetrical triangle.
Christopher Lewis
EUR/USD daily chart, December 12, 2018

The Euro has rallied initially during the trading session on Tuesday but found the trouble at the 1.14 level. At this point, we rolled right back over and fell to the downside. At this point, it’s likely that we will continue to see sellers on these rallies, because quite frankly there are so many issues in the European Union right now that will continue to weigh upon the value of the currency. The US dollar is strengthening due to the fact that we already know that the Federal Reserve is going to raise interest rates, and of course the European Central Bank is dealing with a multitude of issues at the same time.

EUR/USD Forecast Video 12.12.18

As you can see on the chart, there is a symmetrical triangle, and if we break down below the bottom of the uptrend line, that could send this market much lower. At that point, it’s likely that we go to the 1.11 level underneath, which has been important more than once. Ultimately, the downtrend line on the symmetrical triangle should keep this market lower, so if we do rally, there’s probably a selling opportunity up there as well. I think you will see a lot of volatility in this market, especially going into the end of the year. As liquidity dries up, choppiness is normal and I think that the market will be very jittery over the next several sessions. Ultimately, this is a market that will be very difficult to hang onto.

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