EUR/USD Price Forecast – Euro waiting for Fed

The Euro has done very little during trading on Wednesday as we continue to hover around the 1.12 handle. Because of this, the market looks very likely to favor a lot of back and forth until we get that announcement.
Christopher Lewis
EUR/USD daily chart, June 20, 2019

The Euro went back and forth during the trading session on Wednesday as we wait for the Federal Reserve to release its statement. At that point, the question then becomes whether or not they are “dovish enough” to send this market higher. If they are not, then we could very well drop down to the 1.11 handle. To the upside, the 1.1350 level will probably be resistive. But frankly, with the ECB talking about being dovish during the Tuesday session, one would have to wonder whether or not it wasn’t simply an attempt to front run the Federal Reserve stepping to the soft side.

Euro to Dollar Forecast Video 20.06.19

That being said I believe that we will continue to stay within the range that has shown itself to be important this chart, meaning that the 1.11 level should hold, just as the 1.1350 level should hold as well. I think this is a very balanced the market, and I do believe that we are trying to turn back around, but at this point it’s probably best to leave this market alone and reassess the entire situation. Expect a lot of volatility at the time of announcement, and then eventually some type of stability. It’s where we get that stability that will matter, and quite frankly I am more than comfortable waiting for the daily close to format the next trade. Between now and then, I will be on the sidelines as this will be a very choppy and difficult market. Some days artwork trading, and quite frankly it’s not until we figure out where were going that it’s worth being bothered with. At the levels mentioned previously, I am more than willing to put on a trade because the risk to reward ratio is so heavily skewed in my favor.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.