EUR/USD Price Forecast – Euro rallies again on Wednesday

By:

Updated: Aug 23, 2018, 05:36 UTC

The Euro rallied a bit during the day on Wednesday, breaking above the 1.16 level where I expect to see some form of resistance. As I record this, we are hovering that important level, so I think that a short-term pullback may be in the cards, but ultimately this should be an opportunity to pick up a bit of value, unless of course we drop below the vital 1.15 handle again.

The Euro has rallied during trading on Wednesday but seems to be struggling with the idea of 1.16 currently. I think at this point though; a pullback is probably going to attract some value hunters. This will be especially true near the 1.1570 level, and then of course at the psychologically and structurally important 1.15 handle. In general, I believe that the market should continue to focus on the Turkish situation, but at the same time whether it may have been a bit overblown. The media likes to exaggerate things, because quite frankly nothing grabs a headline quicker than threats of a repeat of the great recession.

At this point, I think the 1.15 level tells the story, and if we can retain that level, then I think we will probably see this market continue to try to go higher. If we do give it up, that would obviously be a negative turn of events and I think it would be time to start selling. Until then, I am cautiously optimistic, but only to the 1.1850 level, which I see as the top of the consolidation range that we had been in previously when we were trading at these levels. Expect a lot of noise, but these days that goes without saying as there are so many high-frequency trading algorithms in this market now.

Euro to Dollar Forecast Video 23.08.18

About the Author

Christopher Lewisauthor

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.