The Euro rallied a bit during the trading session on Monday but did give back some of the gains to show signs of exhaustion or perhaps even weakness. The 1.1350 level above is a bit resistive, and essentially the area where we begin to see a lot of “fair value” in this market as it is basically the middle of the overall consolidation that I have marked on the chart. The 50 day EMA is causing a bit of resistance, but beyond that it is starting to turn higher, so this could bring in money to the upside. At this point, it makes quite a bit of sense that a move above the 1.1350 level could be the gateway to higher pricing.
EUR USD Forecast Video 16.04.19
If we do rally from there I suspect that we will probably go looking towards 1.1425 handle, which is essentially where the 200 day EMA is. Beyond that, if we break above that region we will probably go looking towards 1.15 level which is massive resistance.
To the downside, if we were to break down below the 1.12 level on a daily close, that would be a significant turn of events. Beyond that, if we break down below the 1.1150 level, then the Euro would collapse and reach towards the 1.10 level and what would be a horrible sign for the common currency. In general, this is a market that should consolidate in general though, because we have two central banks that are willing to stay as Lewis as humanly possible.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – April 15, 2019 Forecast
- Natural Gas Price Prediction – Prices Drop as LNG Exports Slow
- Pound Is Happy About Brexit Delay
- Crude Oil Price Forecast – Crude oil markets pull back
- E-mini S&P 500 Index (ES) Futures Technical Analysis – April 15, 2019 Forecast
- Gold Price Futures (GC) Technical Analysis – April 15, 2019 Forecast