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EUR/USD Price Forecast – Euro grinds back and forth ahead of Fed decision

By:
Christopher Lewis
Updated: Jul 31, 2019, 15:53 UTC

The Euro is grinding back and forth against the US dollar ahead of the Federal Reserve interest rate decision. It’s not so much that the decision that people are worried about, but whether or not there is a dovish statement. At this point though, it should be pointed out that the 1.11 level does in fact look to be significant support.

EUR/USD daily chart, August 01, 2019

The Euro fell a bit during the trading session on Wednesday as we await the interest rate decision, but at this point I think that the market will find enough buyers to turn things around and reach towards the 1.12 level above. At this point, the market looks to be very choppy overall, as we try to figure out where we go next. At this point though, if we were to break down below the 1.11 handle, it’s possible that we could go looking towards the 1.10 level. All things being equal, I think that this is a market that will continue to show signs of choppiness and indecisive behavior, but longer-term I believe that the market is trying to find its way to the upside as I think the bottoming will continue.

Euro to Dollar Forecast Video 01.08.19

The 1.12 level above is resistance, extending to the 1.13 handle. I anticipate that will be our next move but obviously we have a lot of work to do to get there. If the Federal Reserve is dovish enough, that should be the next move that we see but I also recognize that there will be a lot of noise between now and then, and therefore it’s a difficult proposition to hang onto this trade unless you do it with a small amount of position size. As far as selling is concerned I am a bit hesitant to do in the short term.

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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