EUR/USD Price Forecast – Euro Continues To Tread Water
The Euro went back and forth during the trading session on Wednesday as we continue to dance around the 50 day EMA. The 50 day EMA is relatively flat, so that shows just how uninspiring this market is. Beyond that, we have been trading in a 200 point range with the 1.10 level underneath offering support, while the 1.12 level above offers resistance. We are near the 1.11 handle, which I believe is essentially “fair value” in this market. Notice how all over the last several months we have tried one extreme or the other in this box, only to return back to this level. And therefore, it’s the trade that I continue to look for in the EUR/USD pair: fading moves to the outside of the rectangle.
Euro to Dollar Forecast Video 23.01.20
Granted, this is a market that will eventually break out of that area because obviously consolidation doesn’t last forever, but the trade will typically work multiple times before it simply doesn’t. If the trade doesn’t work, then it shows you which direction you should be trading going forward. The market is still technically in a downtrend, but it does look as if we are trying to turn things around, and it should also be noted that the Euro is behaving very much like the Australian dollar, so keep an eye on both of these charts to give you a “heads up” as to where the currencies will be heading against the greenback overall. All things being equal, this is a market that I think stays within the range.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
