EUR/USD Price Forecast – euro spikes on optimism of Brexit deal
The EUR/USD pair rallied rather significantly during the trading session on Wednesday, slicing through the 1.16 level like it wasn’t even there. Ultimately, this is a market that continues to move on the fate of the Brexit and many other things, so the fact that we may get some type of deal soon of course is very positive for the European Union. At this point, we have gone a little overboard with the buying opportunity, but I do think that we will continue to grind higher. This will be especially true if an actual deal is announced.
However, we’ve heard that they are close to a deal before, so be very cautious. As I would not jump in with both feet, and I would look for short-term pullbacks to build a position. The small position can eventually be built to a full position but chasing a candle like this is a great way to lose money if you’re not cautious. At this point, I believe that the 1.17 level above will be the target, but it’s going to take some time to get there. Overall, I think that the market will probably try to reach towards the 1.18 level above, which is the top of the longer-term consolidation area. Overall, I think that the market will continue to be very noisy, but it does look as if the buyers are starting to flex their muscles again. We remain in consolidation between 1.15 on the bottom and the 1.18 level on the top.