EUR/USD Forecast: Euro Continues to Threaten a Breakout

I think you are probably forced to trade short term charts in this market. The EUR/USD currency pair is slightly higher during Wednesday’s trading as it looks like we are trying our best to break above the 1.09 level. This opens up the possibility of a break to 1.10, but we have the Fed meeting next week which is likely to create quite a bit of noise. Euro has of course more than likely benefited from an inadequate ECB and the illusion that the Federal Reserve will suddenly loosen monetary policy. Advertisement SEE FOR YOURSELF WHY EUR/USD IS THE MOST TRADABLE PAIR TRADE EUR/USD NOW image The 1.10 price level is a target that I think is a bit tight at this point. I think the most important thing to note is that we are a bit overextended on the positive side, so a pullback would make sense. However, if we go beyond the recent highs, 1.10 will be targeted fairly quickly. A break above it opens a move to the 1.11 handle. Remember that the Euro tends to be very volatile and noisy, so expecting a clean move is probably asking a lot of this currency pair. On the downside, I think the 1.08 level will be important, and if we were to break below that, we could really start to see a significant selloff to the 50-day EMA near the 1.06 level. Overall, it’s a market that I think is still very noisy, and so you have to be careful about being too aggressive between now and the Fed meeting. At the end of the day, we can have the meeting come and go, and so we would see a little more certainty if it’s at least half of the equation. I think you are probably forced to trade short term charts in this market. Eventually we will get a better decision, but right now we don’t have enough clarity to be aggressive and I think that will probably continue for another week as we wait for Jerome Powell and his statement after interest. increase in interest rates.

Michael Cooper

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