EUR/USD Price Forecast – Euro runs into a brick wall

The Euro rallied during the trading session on Friday but ran into the massive resistance just above the 1.1450 level and turned around. This is a market that continues to consolidate, and as we are in the last couple of days of trading, it’s difficult to imagine a breakout in the short term.
Christopher Lewis
EUR/USD daily chart, December 31, 2018

The Euro has tried to rally during the day on Friday, rallying a bit above the 1.1450 level, but then turned around of form a shooting star. The 1.15 level is a massive barrier, and it’s going to be difficult to break above, and more importantly: sustain that move. If we do though, then we will make a serious run towards the 1.16 handle. We can break above that; the market should then go to the 1.18 level.

EURUSD analysis Video 31.12.18

The market of course is going to continue to be very noisy due to the fact that we have been so choppy and dislodged. There are a lot of reasons to think that this market will continue to be very noisy going into the new year, as there are plenty of issues when it comes to the European Union, and of course the Federal Reserve seems to be a bit wishy-washy. The US dollar typically is stronger in times of uncertainty and economic concern, and we have plenty of that when it comes out. I think at this point it’s likely that the choppiness will be the main feature of this market that people will have to get used to, and therefore I would find myself looking more for short-term trades at best. I think at this point the 1.15 level is a major resistance barrier, just as the 1.13 level underneath is a major support. Expect a lot of noise between those two areas.

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