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EUR/USD Price Forecast – Euro pulls back from major resistance again

By:
Christopher Lewis
Updated: Dec 21, 2018, 18:30 UTC

The Euro try to rally towards the 1.15 handle but failed yet again as the area continues to hold. Ultimately, I think this shows just how stuck the market is right now as we have so many different issues going on at the same time.

EUR/USD daily chart, December 24, 2018

The Euro continues to struggle in general, as the 1.15 level has been so crucial for quite some time in this pair. At this point, I believe that the market is going to continue to chop around, especially considering that the market is heading into the holiday season, which of course is a time of low liquidity and misdirection. At best I think we’re you are looking at a situation where we will continue to bounce between the 1.15 level above, and the 1.12 level on the bottom. That being said, we could be getting a bit of a short covering rally so if we get a daily close above the 1.15 handle, it’s possible that we could go to the 1.16 level and I might even be convinced to take a bit of a flyer towards the 1.18 handle.

EUR USD Forecast Video 24.12.18

If we do break down from here, I think that the market will go down to the 1.13 handle. This choppiness will continue to be a major issue for traders that are trying to discern the direction of what has become the realm of high-frequency traders. Ultimately, this is a market that is probably best avoided to be honest, at least until we can get some clarity and a break out of this range. However, if you are a short-term scalper, you may find yourself attracted to this type of action but it has been choppy and messy to say the least.

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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