EUR/USD Price Forecast – Euro rallies after soft CPI

The Euro initially tried to rally during the early session in America as the CPI figures were very soft, but you can see that the market has given back quite a bit of the gains. If that’s going to continue to be the case, we could fall back towards the 1.1550 level, possibly even the 1.15 level as they both should be somewhat supportive. I believe that the pullback will end up being a buying opportunity, but I would be very cautious and take my time. Let the markets find stability and/or support before putting money to work. I don’t know that I would short here, because there is so much in the way of demand underneath, especially near the 1.1465 handle.

That being the case, the market may simply be taking a bit of a breather, and that should be an opportunity for those who are patient enough to wait for that trade set up. The alternate scenario of course is that we bust through the 1.16 level, and that would be a sign of continuation to the upside. As I record this, we are trying to form a four hour shooting star, so at this point it looks like exhausted is starting to come back into the market, at least for the short term. Remember, the EU is still dealing with the Brexit, so there is always going to be a bit of a headline risk out there for the Euro.

EURUSD analysis Video 12.10.18