EUR/USD Price Forecast – Euro rallies into resistance on Tuesday

The Euro rallied during most of the day on Tuesday, breaking above the 1.14 level, an area that began significant resistance. I think at this point, we are probably going to see the market continues to be rather choppy, and it doesn’t look like it’s ready to go forward.
Christopher Lewis
EUR/USD daily chart, December 05, 2018

The Euro rallied during most of the session on Tuesday but found enough trouble above the 1.14 level to see sellers step back in and try to keep the market contained. This makes sense, there are a lot of concerns out there when it comes to the European Union. There are troubles in the Italian debt markets, riots in France, and quite frankly fairly soft looking economic figures. On the other side of the Atlantic Ocean, you have the United States which is going fairly well, and although the Federal Reserve is starting to show some flexibility, it is still expected to raise interest rates at least a couple of times.

EUR/USD Forecast Video 05.12.18

I believe that between the 1.14 and the 1.15 level above, there is a massive amount of resistance that should keep the market back down. I believe that signs of exhaustion will be what we are looking for to start shorting again, but I don’t think that the moves will be huge. Quite frankly I think that this is a market that you are looking to trade in short-term intervals, not anything major. If we did break above the 1.15 handle, then of course that would change a lot of things, perhaps opening the door to the 1.16 level, then possibly the 1.18 level after that. On the downside, I see a lot of support at the 1.13 level, and then the 1.11 handle. I think at this point you are probably going to be better off trading the 15 minute charts than the daily chart.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.