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Christopher Lewis
EUR/USD daily chart, February 28, 2019

The Euro pulled back just a bit during the trading session on Wednesday, as we continue to dance around in the middle of the overall consolidation. The market has been basing for some time, with the 1.1250 level underneath offering support, and the 1.15 level above offering significant resistance. At this point, I suspect that we are trying to base in this market, as we are an extremely low levels, and a major demand zone on the longer-term charts. With this information, I look at this as a “buy on the dips” scenario, as we will more than likely try to fulfill the overall consolidation nature of this area.

Euro to Dollar Forecast Video 28.02.19

Just below, there is a bit of a miniature bull flag that has formed, so I believe that the 1.1350 level is temporary support. Because of this, it’s very likely that the choppiness will continue, but with more of an upward slant. That being said, it’s very unlikely that we break out and above the 1.15 level anytime soon, with the lone exception of perhaps the Federal Reserve completely capitulating on the idea of normalizing rates or the balance sheet. Jerome Powell is speaking in front of Congress, so there is that slight possibility but he has already given an entire day’s worth of testimony and we haven’t seen that yet.

All things being equal, it’s very likely that we will see a lot of choppiness and noisy trading, but in the short term I do believe that the upside is the right side.

Please let us know what you think in the comments below

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