EUR/USD Price Forecast – Euro Rallies Towards 200 day EMA
The Euro has rallied a bit during the trading session on Monday but continues to struggle near the 200 day EMA. We have seen a massive selloff when we did try to break above the top of the 200 day EMA, and therefore it’s very likely we will continue to see a lot of selling just above. There is a downtrend line and the 61.8% Fibonacci retracement level from the previous uptrend that should now be resistance. Beyond that, the 1.12 level is something to pay attention to as well, so overall, it’s likely that we will see more noise above as we get closer to the downtrend line. Beyond that, there were several negative European figures that had come out earlier in the day that could have a bit of negative influence as well.
EUR USD Forecast Video 17.12.19
Although this has been a nice little move higher, we have seen these moves multiple times over the last couple of years, and they fail every time. Until shown something different, it’s difficult for me to get overly excited about owning the Euro. Because of this, I remain skeptical and look for signs of exhaustion to start selling on short-term charts. Having said that, I’m not looking for some type of massive move, I’m looking for short-term trades to benefit from the longer-term downtrend. All of that being said, if we were to break above the 1.12 handle, then I think we could have a significant move towards the 1.15 level, which of course would attract a lot of attention.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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