The Euro has rallied quite nicely during the Monday session as traders came back to work. By breaking out of the 50 pip range we had been in over the last couple of weeks, this confirms that the bottom of the consolidation area should hold, in the form of the 1.12 handle as I have marked on the chart. To the upside, there is massive resistance at the 1.15 handle, and although I do think that the market will try to get there, it’s going to take a significant amount of time. Ultimately, this is a market that should be bought on dips as the 1.12 level is so crucial on the longer-term charts.
EUR USD Forecast Video 09.04.19
Although the ECB is rather loose with its monetary policy let’s be honest here: so as the Federal Reserve. The Federal Reserve has completely capitulated Wall Street as to the demand for lower rates and should continue to be very loose. I’m not suggesting that the Euro is going to suddenly outperform the US dollar, but what I am suggesting is that we are going to continue to go back and forth in the range that has been so important for so long. With that in mind a very bullish of the Euro, at least in the short term. The initial resistance will be found at the 1.1325 handle, and then much more significant resistance will begin somewhere closer to the 1.1425 handle.
The markets have been bouncing around in this 300 PIP range for some time, and quite frankly there’s no reason whatsoever to fight that. You simply trade these ranges until they don’t work anymore.
Please let us know what you think in the comments below