EUR/USD Price Forecast – range bound trading for the Euro

The Euro has been very busy during the trading session on Monday, going back and forth from the open. There are a lot of concerns around the world with not only the trade tariffs going back and forth between the united states and China, but we also have to worry about whether Angela Merkel will be in power within just the next few weeks. This has shocked European markets, and needless to say has shown itself as being negative for the Euro overall.

The Federal Reserve looks likely to raise interest rates at least twice this year, and with the ECB confirming that an interest rate hike is at least a year away, it makes sense that the pair continues to drift to the downside. I think that we are probably looking for short-term consolidation more than anything else, as we have fallen so far in such a short amount of time. Rallies at this point would be looked at with suspicion, and I believe that the 1.17 level should be resistance, just as the 1.18 level above is as well. I look at the 1.15 level underneath as a massive support level, and it is an area that will be very difficult to break through as it is so important from the longer-term perspective. In fact, if we were to break down below there this pair will unwind rather drastically. I think it would take a significant amount of momentum to do so though, so I expect that we go back and forth.

EUR USD Forecast Video 19.06.18