EUR/USD Price Forecast – Euro struggles during Tuesday sessionThe Euro initially tried to rally during the day on Tuesday, but turned around to fall towards the 1.17 level, an area that has been supported recently. The question now is whether or not this level will hold?
The Euro rallied initially during the day on Tuesday, reaching towards 1.1750 level before rolling over and slamming into the 1.700 level underneath, an area that was where we started during the day. I think that the market should continue to be very noisy, as we have the negotiations with the Brexit going on, and of course the US dollar itself is strong. However, I think that when you look at the longer-term charts you cannot help but notice that the 1.1850 level above is the true resistance, just as we have a “floor” in the market near the 1.15 level underneath.
Being the domain of high-frequency trading, the EUR/USD pair has a certain amount of volatility built into it anyway. I think that the 1.17 level holding at support by the end of the day would be very good sign, perhaps sending this pair higher for Wednesday. I also recognize the 1.1675 level as being supportive and a scene of a lot of demand as well. I believe at this point the market will continue to find value hunters on dips, but obviously you will need to be cautious about when you put money to work. I would do so slowly, and then only add as we make a fresh, new highs.
Overall, I think that we are essentially stuck in a consolidation range, and it should be treated as such as the market continues to be very noisy and of course headlines driven which of course makes for a lot of erratic behavior.