EUR/USD Weekly Price Forecast – Euro Continues to Attempt to Find Its Footing

Euro vs US Dollar Weekly Technical Analysis

You can see that the euro broke above the 1.07 level this week. That of course is an area that will attract a certain amount of attention as it was previous support and should now be resistant. That being said, it looks like we are just simply going to grind back and forth in the euro this week, next week, or possibly even the foreseeable future.

And we have a lot of questions about central bank actions. Quite frankly, nobody seems overly aggressive, though it is probably worth noting that the ECB is likely to cut rates before the Federal Reserve. At the end of the day, really, it comes down to what’s going on in America and what the Fed is going to be doing.

The inflation numbers are all over the place in America, and if that’s going to be the case, then obviously you’re going to have a situation where most market participants aren’t really going to know what to do. So, you’re going to be forced to watch the interest rate market in the United States for some type of idea as to where we may be going when it comes to the US dollar.

The 1.10 level above is significant resistance, 1.05 underneath is significant support. I do think that you probably have more downward pressure than up, but at this point I expect to see more of a neutral stance with a slight leaning towards the downside.

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