EUR/USD Weekly Price Forecast – Euro Forms a Hammer

Christopher Lewis
Updated: Feb 16, 2024, 14:00 GMT+00:00

The euro initially dipped during the course of the week, but it looks like we are hanging on to the 1.0750 region, an area that I have pointed out multiple times. Because of this, we may get a bit of a reprieve for the common currency.

Euro bills, FX Empire

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EUR/USD Forecast Video for 19-02-2024

Euro vs US Dollar Weekly Technical Analysis

The Euro initially fell this week, but it has found a little bit of a footing near the 1.0750 level. This is an area that I think a lot of people will be paying close attention to, and therefore it’s not a huge surprise that we might get a bounce from here. That bounce could open up a move to the 1.10 level above.

If we were to break down below the bottom of the candlestick for the week, that would obviously be negative, and it could open up a move down to the 1.05 level, an area that I think is pretty significant when it comes to support. In general, we are basically in the middle of what could be the yearly range between 1.05 and 1.10. We could even go as high as 1.1250 this year, but anything above there I think would be a bit of a stretch as we have a lot of concerns globally.

So therefore, the demand for dollars will continue. And of course, both central banks are very likely to end up being loose this year. And if that’s going to be the case, nobody’s really going to win with the exception of maybe the dollar if there’s some type of serious economic issue. Remember Germany is now in a recession and that of course will make the ECB act to loosen monetary policy much sooner than people had anticipated. In the next couple of weeks though, it looks like we may try to bounce a little bit.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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