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EUR/USD Price Forecast – Euro has noisy and negative session on Wednesday

By:
Christopher Lewis
Updated: Jul 5, 2018, 04:13 UTC

The Euro initially tried to rally during the day on Wednesday, reaching towards the 1.1685 handle before turning around and falling towards 1.1640 level. The market will continue to be very noisy, and I think at this point we can count on a lot of back and forth trading.

EUR/USD daily chart, July 05, 2018

The EUR/USD pair has been very noisy during the trading session on Wednesday, as the Americans were away for the Independence Day holiday. At this point, the market looks likely to be very noisy over the next couple of days as we worry about the situation politically in the European Union, although that is starting to calm down. Overall, there are a lot of geopolitical concerns out there that will continue to weigh upon the Forex markets in general, in the EUR/USD pair will be any different.

I think that currently you should look at this is a market that has a massive “floor” at the 1.15 level underneath, and the “ceiling” is closer to the 1.1850 level. In general, the market seems to be going back and forth with a slightly upward tilt over the last couple of days, but that can change in the flash of an eye. I would use something along the lines of the stochastic oscillator as a secondary indicator, and I would also keep my position size somewhat small as we continue to see volatility get worse, not better. When you look at the hourly chart, there are a lot of higher lows, with a significant amount of resistance near the 1.17 level short term. Ultimately, the market is trying to break out, so it’s possible we may go towards the top of the larger consolidation area, but we need some type of good news to make that happen. Otherwise, back to the stochastic oscillator!

Euro to Dollar Forecast Video 05.07.18

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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