EUR/USD Price Forecast – Euro falls in risk off environment on Tuesday
The EUR/USD pair has fallen a bit during the trading session on Tuesday but remains above the vital 1.15 handle below. That’s an area that is psychologically important, just as it is structurally important. The 1.15 level has a ton of noise underneath it, and I think it should be very difficult to break down through. However, if we did it’s very likely that this pair will unwind to much lower levels.
The pair has been sold off rather drastically during the last couple of weeks and is perhaps a bit overdone. I think rallies will continue to be a mainstay of the market, but they also will more than likely run into a lot of resistance above. In other words, I think that this is going to be a lot of back and forth trading over the next couple of days, with the 1.1650 level above offering a significant amount of resistance.
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If we did break above that level, it’s likely that we could continue to go higher, perhaps reaching towards 1.1750 level. However, we need some type of stability in the trade war, and of course the situation with Angela Merkel and whether or not she is going to be around in a couple of weeks. At this point, I don’t trust the Euro for the longer move.