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EUR/USD Price Forecast – Euro runs into resistance

By:
Christopher Lewis
Updated: Nov 29, 2018, 16:44 UTC

The Euro ran into resistance during the trading session on Thursday, reaching towards 1.14 level where it ran into some resistance. I think at this point the market may have gotten ahead of itself.

EUR/USD daily chart, November 30, 2018

The Euro rallied initially during the trading session on Thursday but gave back quite a bit of gains as we reached towards the 1.14 handle. That’s an area that begins significant resistance, which I think it extends all the way to the 1.15 handle. We clearly have a lot of issues in the European Union, so it makes sense that the Euro would have some issues. At this point, I think that the rally in the Euro due to the comments from Jerome Powell on Wednesday is a little bit overdone.

EURUSD analysis Video 30.11.18

Overall, I think that rallies are to be faded, because quite frankly the markets may have read a bit too much into the Jerome Powell speech. Beyond that, there are a lot of structural problems in the European Union right now, so I don’t see a scenario in which I want to buy the Euro before we break above the 1.15 handle. The 1.13 level underneath is significant support, so I think that we are just simply looking at a market that’s going to chop around with a certain amount of negative connotation. If we do break down below that level, then I think that the market would probably go looking towards the 1.12 level after that, and then possibly the structurally important 1.11 handle.

Either way, I think that one think you can count on is going to be a lot of choppiness and volatility in this pair as the high-frequency traders continue to push the Euro around. Beyond all of the problems in the EU, we still have that whole Brexit problem as well.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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