EUR/USD Price Forecast – Euro rallies slightly in continued back and forth trading

The Euro went back and forth yet again during the trading session on Wednesday, as we are hanging about the 1.1150 range. There is a larger consolidation area that we are involved in, so at this point we need to pay attention to a couple of levels.
Christopher Lewis
EUR/USD daily chart, May 23, 2019

The Euro went back and forth during the trading session on Wednesday, as we continue to see a lot of volatility in a market that really doesn’t know where to go. The 1.12 level above is significant resistance, just as the 1.11 level underneath is massive support. So it makes sense that we are hanging about the 1.1150 level, as it is essentially “fair value” in this market. Because of this, the market is essentially undecided, as we are waiting to see which direction the market wants to go longer-term.

Euro to Dollar Forecast Video 23.05.19

If we break down below the 1.11 level, then the market is very likely to go down to the 1.10 level. That is a large, round, psychologically significant figure, so it will cause a certain amount of support based upon that. That also can be said to be an area where you would expect a lot of order flow. To the upside, the 1.12 level probably starts a 50 pip thick range of resistance all the way to the 1.1250 level. That was an area that was significant support in the past, so it makes sense that it would be significant resistance in the future. Overall, I think the market is a bit negative, but the downside is probably somewhat limited. In the meantime, I suspect we are simply going to bounce around in this 100 point range, offering short term back and forth trading for those who are short-term traders.

Please let us know what you think in the comments below

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
IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US