EUR/USD Price Forecast – Euro Rolls Over

The longer-term trend is most certainly negative, and therefore it isn’t exactly surprising that the Euro has fallen again at the 200 day EMA. The down trending line above also offers a lot of resistance and so does the 1.12 handle. Ultimately, this is a market that should continue to see a lot of choppiness and difficulty but at the end of the day it’s likely that this pair will continue to drift lower overall as the European Central Bank has loose monetary policy on its mind. I believe that the market is going to simply consolidate between the 1.12 level above and the 1.10 level underneath. That doesn’t mean that it is going to be easy, but I believe the trading the outer fringes of this range between now and the end of the year probably makes the most amount of sense, because quite frankly the currency markets don’t tend to move very much this time of year.

EUR/USD Forecast Video 19.12.19

If we did break above the 1.12 handle, then we can start to talk about a potential move to the 1.14 handle above. Alternately, if we were to break down below the 1.10 level then it opens up the door to the 1.09 level, and then eventually the 1.0750 level where there is a gap that has yet to be filled. Overall though, I do prefer fading rallies more than buying dips, so I remain negative of this pair, but basically in a mild sense, I’m not aggressive at all with my positions, and recognize that for the most part this is a market that I can take or leave.

Please let us know what you think in the comments below