The Euro has pulled back a bit from the 1.15 handle during the trading session, as we continue to see a lot of resistance in that barrier. However, beyond that we have the 200 day EMA just above there so I think this is going to be a very difficult nut to crack. Once we do, assuming we do, then the Euro could take off. Keep in mind that the Federal Reserve suddenly is a bit more dovish than originally thought, and that of course is dollar negative.
EUR/USD Forecast Video 09.01.019
Quite frankly, if the Europeans could get together this would be very easy for the Euro to strengthen. Unfortunately, they seem to be impossibly lost when it comes to managing their finances or growing their economy. I do think that the Euro is undervalued at the moment, and I also think that we are starting to form a rounded bottom, but obviously it is going to take some time to play out. The reality of the situation is that the Euro is traded by high-frequency traders, so they love going back and forth for micro moves. That is part of what we are seeing here, but eventually we should get some type of catalyst to break out or break down. Another thing that is going to cause a lot of problems is the fact that we still have the Brexit going on.