EUR/USD Price Forecast – Euro tops around on Wednesday

The Euro chop around during the trading session on Wednesday, as we are approaching the 1.1450 level. This is the beginning of significant resistance that extends to the 1.15 handle, and as the world awaited the Federal Reserve press conference, it makes a lot of sense nothing much happened.
Christopher Lewis
EUR/USD daily chart, January 31, 2019

The Euro went back and forth during the trading session on Wednesday, testing the 1.1450 level. That’s an area that of course is major resistance based upon the short-term charts, and I think it extends to the 1.15 level. Just above that level we have the 200 day EMA, I suspect that it will be very difficult to break out to the upside. Signs of exhaustion could cause pullbacks but when you look at this pair you can see that the market has seen massive amounts of support at the 1.13 level. I believe that this market will continue to be very choppy, as if the Federal Reserve ends up being somewhat soft, that will be negative for the dollar, but at the same time we have very little in the way of strong economic activity in the European Union.

Euro to Dollar Forecast Video 31.01.19

This pair has a long history of focusing on one currency or the other, and I suspect that right now we are paying more attention to the US dollar than anything else. This is all about the Federal Reserve, at least for the short term. If we can break above the 200 day EMA, the market should then go to the 1.18 level, but it may take some significant amount of time to get there. If we break down below the 1.13 level, we could then go down to the 1.12 level which coincides nicely with the 61.8% Fibonacci retracement level, an area that is very supportive on the longer-term charts.

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