Euro falls against the US dollar as greenback show signs of strength on Monday

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Updated: Apr 24, 2018, 07:38 GMT+00:00

The Euro fell significantly against the greenback on Monday, as the US dollar was one of the strongest currencies that I follow here at FX Empire. The 1.22 level is just below and an area that should offer a bit of support, but if we get a bounce, the market could continue to go back and forth as we have for weeks. I believe that eventually we will see this.

The EUR/USD pair has broken down during the trading session on Monday, reaching towards the 1.22 level. That’s an area that begins significant support down to the 1.21 handle, so if we can get some type of bounce here it’s likely that the market will continue to go back and forth, as we have for weeks. However, if we were to break down below the 1.21 level, that would be a very negative sign in general and could ruin what has previously been a bullish market.

I think that if we can bounce from here, the 1.2350 level would be a target, and then eventually the 1.2450 level. If we can break above there, then the market probably goes to the 1.25 handle. That’s an area that is massive resistance, and I think if we can break above there, the market probably goes to the 1.32 handle. That measurement is based upon breaking above the top of the weekly bullish flag on the weekly charts. I think that the markets overall still favor the upside, but it may take something significant to clarify where we go. Because of this, I am on the sidelines waiting to see if we can pick up the necessary support and momentum necessary to continue to go to the upside.

EUR USD Forecast Video 24.04.18

About the Author

Christopher Lewisauthor

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.