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Christopher Lewis
EUR/USD daily chart, January 08, 2019

The Euro rallied significantly during the day on Monday but continues to see a lot of resistance just above, and therefore it’s very likely that we will continue to see the 1.15 level above offer a significant amount of resistance. I think that resistance probably extends towards the 1.16 level above, so think of it more as a “zone.” And with that, you can expect a lot of difficulty and confusion.

EUR USD Forecast Video 08.01.19

When you look at the overall attitude of the market, and the way we have traded for the last couple of months, it does look as if we are forming a bit of a “rounded bottom”, which of course is very bullish. However, that resistance is extraordinarily important, so keep in mind that you will probably see a lot of noise in the market, and that the opportunity to break out is there, but it’s also going to be very difficult. With that being the case, I think that you should keep your position size small, or at least wait for a break above the 200 day EMA to go along. I would not be surprised at all to see a bit of a fade from here, because quite frankly the market doesn’t seem to know what it wants to do. I think you will continue to see a lot of skittish behavior but given enough time we will get some type of clarity. I don’t think you’re going to see it any time in the next couple of days.

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