The Euro rallied during the trading session on Monday, reaching towards the 1.1350 level. At this point, it’s very likely that we are going to continue to see buyers in this general vicinity, as the 1.13 level has attracted a lot of attention. Once we get above the 1.1350 level, then I think the market probably goes about 100 pips higher, perhaps even the 1.15 level after that. This is a market that has been consolidating for some time, and the fact that we are at the bottom of this consolidation area suggests that we should go higher.
EUR USD Forecast Video 19.02.19
The alternate scenario of course is that we break down, but the 1.12 level is massive support. That is the 61.8% Fibonacci retracement level as well, so I think that the downside is relatively limited. After all, the Federal Reserve is very soft at this point, and that should continue to weigh upon the greenback, but we also have the problem with the European Union and it’s very soft economic figures. At this point, I think that we simply grind back and forth as the central banks both look very accommodative.
Expect a lot of volatility, but I think that given enough time we will just simply go back and forth as there is no true directionality of the market and of course the lack of clarity will continue to be a major issue. With that being the case I do prefer buying short-term pullbacks and taking advantage of value down at these low levels.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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