EUR/USD Price Forecast – Euro rolls over slightly during Friday session

The Euro initially tried to rally during the trading session on Friday, but then rolled over to show signs of weakness again. The market looks as if it is going to be very tight in this range, as there are a multitude of reasons that the United States dollar could strengthen, but at the same time the Federal Reserve looks as if it is thinking about trying to step away from being so aggressive. However, it is currently “data dependent”, and of course the jobs number being so strong is an argument for raising rates.

EURUSD analysis Video 07.01.19

At the same time, the European Union has to worry about the Brexit, and a whole plethora of negative economic announcements. On the longer-term charts though, the 61.8% Fibonacci retracement level underneath continues offer support so don’t be surprised if we could see some type of noisy support in that general vicinity. It’s because of this, and the fact that there are so many moving pieces right now around the world that I think that we are going to continue to struggle to get a sustainable move. With that, you can simply revert to back and forth trading, using short-term range bound strategies that feature something along the lines of the Stochastic Oscillator, giving you a look at overbought and oversold conditions in what has been a very tight range defined by the 1.1250 level underneath and the 1.15 level above. Ultimately, this is a short-term market.