EUR/USD Price Forecast – Euro runs into resistance

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.
Christopher Lewis
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.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US