EUR/USD Price Forecast – Euro pulls backThe Euro initially tried to rally during trading on Thursday but gave back the gains that we had seen early, only to wipe out quite a bit of the gains on Wednesday.
The Euro rallied a bit during the trading session on Thursday to kick off the session, but the 1.1450 level above continues to offer significant resistance, and as we have pulled back a bit from there, it looks as if we are going to continue to go back and forth in this overall range. Looking at this chart, we have been in a range for quite some time, and quite frankly it makes sense that nothing has changed, even though the Federal Reserve has basically said that an interest rate hike in 2019 is all but impossible.
EURUSD analysis Video 22.03.19
That being said, the European Central Bank has recently said that they are softening their stance as well, so essentially we have a fight between a couple of soft central banks here. That means that there won’t be any real traction in one direction or the other, at least not in the short term. That being said, we do have some clear areas of interest that if we were to break above it, we could then go looking towards a bigger move.
I suspect that we are going to go looking towards the 1.1350 level underneath, which is essentially the “fair value” in this pair as it is in the middle. If we were to break down below the 1.12 handle, that could break everything down drastically but it seems very unlikely to happen anytime soon. On the other side of the equation, if we can break above the 1.15 handle, it’s very likely that the Euro will continue to grind even higher. Until then, simple back and forth trading continues to be the way forward.
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