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.

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