EUR/USD and GBP/USD Forecast - 4 January 2019

EUR/USD

The Euro rallied a bit during the trading session on Thursday, taking back some of the losses from Wednesday. The market has shown a nice bit of resiliency, as we continue to go back and forth. I think at this point, we are still looking at a scenario that breeds consolidation, and I think at this point the 1.15 level above is going to because quite a bit of resistance, and pushback against Euro rallies. The 200 EMA is just above, so there could be a real fight on our hands and that general vicinity. Otherwise, if we roll over I think that the 1.1250 level will offer significant support. We have the jobs number coming out during the day on Friday, and that could cause some momentum, but right now I think it looks likely that the choppiness will continue.

EURUSD

GBP/USD

The British pound has rallied a bit during the trading session on Thursday, taking back some of the massive loss is that we had seen on Wednesday. However, we are still below the 1.27 level, so unless something catastrophic happens with the US dollar, I suspect that it is only a matter of time before this market rolls over and sells off rather drastically. The 1.25 level has offered support, and I think that we can break down below there and continue to go down to the 1.22 level based upon the descending triangle that we had broken through below. I don’t have any interest in buying this pair until there is some type of agreement or at least signs that we are definitely going to get one, which doesn’t look likely right now as the Brexit continues to drag on.

GBPUSD

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.