EUR/USD Price Forecast – Euro looking for a bottom

The Euro rally during the day was somewhat short-lived, but the reality is that we are starting to find interest just below the 1.14 handle. If we can break out of the daily range for the Friday session, I think we will make a move towards 1.15 handle. Beyond that, we have the Federal Reserve that suddenly seems like it’s probably a little closer to be on a hold than to raise interest rates, at least that seems to be the perception right now. That being said, there is a 200 day EMA on the chart just above that has caused resistance.

EUR/USD Video 21.01.19

Because of this, I think the market will continue to be a bit choppy, and therefore range bound. I do think that we are probably going to go looking towards the 1.15 level next though, but it’s probably going to be more of a grind than a significant move. When you look at the chart from a higher level, then you can see that we are forming a bit of a “rounded bottom”, which of course is a bullish pattern, but it’s also a very slow developing pattern. Because of this, I think the buyers are starting to try to shift the entire trend, and of course breaking above the 200 day EMA on a daily close would of course be very bullish sign as well. If we do break above there, the market probably goes to the 1.18 level above, which has been important in the past.