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EUR/USD Price Forecast – Euro rallies right into resistance

By:
Christopher Lewis
Updated: Aug 1, 2018, 04:59 UTC

The EUR/USD pair has been very bullish during early trading on Tuesday, as we reached towards the 1.1750 level. There is also a descending trendline in this area, and I think it could continue to put bearish pressure on this market as we stay within the symmetrical triangle overall.

EUR/USD daily chart, August 01, 2018

The EUR/USD pair has rallied significantly during trading on Tuesday, going into the US session. However, we are reaching a significant amount of resistance just above, at the 1.1750 level. The level being broken to the upside would be very bullish and could send this market much higher. I think at that point we would gain another hundred points, sending this market towards the top of the longer-term consolidation between the 1.1850 level. In the short term though, I anticipate that we could probably pull back from here, perhaps staying within the longer-term symmetrical triangle that I have been talking about, which would make a lot of sense considering that we have so many major interest rate decisions and of course the jobs number on Friday this week. That puts a lot of uncertainty into the market, and therefore has a lot of people concerned and not willing to put a lot of money to work.

Because of this, I am selling this pair if we can stay below the 1.1750 level, but I’m only expecting a short-term move, something that is more of a reversion to the mean than anything else. I believe that ultimately, we might get some clarity, but it’s not going to be until the end of this week so I will approach this pair like that, as well as the rest of the Forex markets as we are about to see a lot of major news crossing the wires.

EUR/USD Forecast Video 01.08.18

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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