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.

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