EUR/USD Price Forecast – Euro rallies back into the consolidation.

The Euro rallied a bit during the trading session on Wednesday, as we continue to go back and forth in a symmetrical triangle. I think this market is trying to wind up for a larger move, but there is also the possibility that nothing happens between now and the end of the year as traders won’t be interested in putting a lot at risk out there. Ultimately, the 1.15 level above is massive resistance, and I think it will be difficult to get above that. However, if we break down below the uptrend line, then we could go down to the 1.12 handle after that. There is a lot of back and forth choppiness and therefore I would not look for huge moves.

Euro to Dollar Forecast Video 13.12.18

However, if we break above the 1.15 handle, that could be assigned that we are trying to reenter the previous consolidation area that extends to the 1.18 level. When you look at longer-term charts, the 61.8% Fibonacci retracement level has offered support for the Euro, and if we get a continuation of the ECB tightening monetary policy, or at least stepping away from quantitative easing, as they are, it could be reason enough for the Euro to rally. Beyond that, if the Federal Reserve looks likely to soften its tone, then it’s possible that the EUR/USD pair should show signs of bullishness. However, if the Federal Reserve does in fact hike interest rates three times next year, that will be fuel to go much lower.