EUR/USD Price Forecast – Euro testing trendlineThe Euro dropped a bit during the trading session on Tuesday as the Americans came back to work. That being the case, the market is testing and uptrend line, and it looks likely that we could see a little bit of support in this area as we have been forming a “rounded bottom” as of late.
The Euro has drifted a bit lower during the trading session on Tuesday, testing the uptrend line that I have marked on the chart. We are most certainly in a choppy area, as we have been forming a “rounded bottom” as of late. I believe that the 1.13 level underneath being broken would be a very negative sign though. We have seen a lot of pressure on the Euro over the last couple of days, but when you look at the chart you can see that we have had this happen more than once.
EUR/USD Forecast Video 23.01.19
I believe that if we can bounce above the top of the Monday session, then the market probably continues to go much higher, perhaps the 1.15 level would be targeted again. We could even test the 200 day EMA, pictured in black on the chart, which had recently caused resistance. It’s very rare that we break above the 200 day EMA on the first attempt, so this would make sense. However, I think it’s going to take a lot of momentum to make that happen, but I do think that with the ECB meeting this week we could have that catalyst. Otherwise, if we break down below the 1.13 level we will probably test the 1.12 level underneath which is the 61.8% Fibonacci retracement level from the entire move that we have been dealing with for some time. Expect volatility regardless.