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EUR/USD Price Forecast – Euro rallies into resistance

By:
Christopher Lewis

The Euro tried to rally during the trading session on Tuesday, reaching towards the 1.14 handle where it failed. This isn’t much of a surprise though, as we have been compressing the overall range for several weeks.

EUR/USD daily chart, December 19, 2018

The Euro tried to rally a bit during the trading session on Tuesday but ran into trouble at the 1.14 handle. That’s not much of a surprise, considering that the marketplace is waiting for a major interest rate announcement and more importantly a statement coming from the Federal Reserve on Wednesday. With that in mind, it makes sense that the trading community would perhaps be looking to shore up trades. However, once we get the statement on Wednesday, we may get a bit of volatility. Longer-term though, I think we are still essentially stuck in this range unless of course the Federal Reserve shocks people, so the next couple of days will be crucial.

EUR/USD Forecast Video 19.12.18

At this point, the 1.15 level above is the “ceiling” in the market, and I think that the 1.12 level underneath is massive support. Overall, if we can break one of those levels, then we can get some real movement in the market. In the meantime, I think we simply go back and forth and therefore am not a huge fan of trading this pair. In fact, the last couple of years in this pair has been very difficult, because we are overly choppy, and continue to do a lot of high-frequency trading. That being the case, I think we have a range bound trading opportunity, if you are patient enough to wait to start shorting somewhere near 1.14 and buying near 1.12 or so. Beyond that, not much has been going on and once we get through the statement, I anticipate even more of the same.

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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