EUR/USD Price Forecast – Euro Struggles At Major Round Figure

The Euro rallied again during the trading session on Monday to kick off the week, breaking above the 1.12 level initially before pulling back. At this point, the market is likely to see a bit of selling pressure in this general vicinity, as it is not only a large, round, psychologically significant figure, but it is also a major barrier from previous trading.
Christopher Lewis
EUR/USD Price Forecast - Euro Struggles At Major Round Figure

The Euro broke higher during the trading session on Monday, breaking above the 1.12 level momentarily. At this point, the market is likely to go back and forth in this area, and perhaps do very little due to the fact that New Year’s Day is Wednesday. However, we are making a serious argument for trying to break out. Nonetheless, I’m not interested in buying a breakout until we get a daily close significantly above the 1.12 handle, because it could be the beginning of something rather big.

EUR USD Forecast Video 31.12.19

Alternately, if we were to break down from here and sliced below the 1.1170 level, it’s likely that the market would roll right back over to reach towards the 50 day EMA. That being said, it’s difficult to get overly excited one way or the other because the trading will be very quiet over the next 24 hours, and that of course will be nonexistent on New Year’s Day. With that in mind, I’m looking to fade rallies but also recognize that looking to the daily close will probably be the best way to go about trading this market. We have seen a lot of noise lately, and I think that will continue to be the case. All things being equal, we are still in a downtrend despite what we have seen of the last couple of days. With this, I believe that the Euro will be worth paying attention to over the next couple of trading sessions.

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