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The Euro has tried to rally above the 1.18 level for some time now but fails every time we get close to it. I think perhaps this is due to the fact that we have an FOMC statement coming, and traitors probably are a bit hesitant to put too much money on in that environment. I believe that the US dollar will of course be in focus over the next couple of days, and the situation with Italy in the European Union will also be unfocused. I think at this point, if we can break above the 1.18 level it’s likely that we could go much higher, with the initial target being the 1.20 level above. That’s an area that I believe continues to be important, as it is not only psychologically significant but it is also a historically significant area.
If we do pull back again from here, it’s obvious that the 1.1725 level is offering a bit of short-term support, so it may be an opportunity for the bullish traders to get involved again at a cheaper price. I think ultimately this pair will break out to the upside, but we need some type of catalyst. Perhaps a less hawkish than expected statement from the FOMC could be reason enough. I’m not saying it’s going to happen, but I do recognize that it certainly would change the complexity around the US dollar. As traders are trying to shrug off global trade fears, it makes sense that this pair could continue to find a bid.
EUR/USD Forecast Video 26.09.18
This article was originally posted on FX Empire