EUR/USD Weekly Forecast – Euro Drops For The Week

EUR/USD Forecast Video for 08-01-2024

Euro vs US Dollar Weekly Technical Analysis

Taking a look at the euro on the weekly timeframe you can see that we have fallen a bit during the week, but it does look like there are buyers underneath. I suspect that it is probably only a matter of time before we try to at least recapture the 1.10 level, but a lot of this is going to come down to the bond markets and what’s going on over there. If yields start to fall in the 10-year yield in America, that will certainly help the euro overcome the US dollar. However, there are a lot of concerns around the world when it comes to the global economy right now.

And quite frankly, even though Europe has inflation, and the ECB seems to be focusing on that, it’s only a matter of time before they have to focus on the idea of a recession in Germany. So, with all of this, I think we are trying to carve out a range. I think that the 1.10 level will be tested again, and I believe that the 1.1250 level is about as far as this market can go. To the downside, the 1.0750 level is support, followed by the 1.06 level.

With all that being said, I think this is a market that is going to continue to be very choppy but in the short term it looks like we are trying to sort things out to the upside. I do not think that we will break out of the overall 600 PIP range anytime soon, but in the short term it looks like traders are willing to go with the illusion that the ECB is going to stay tight for quite some time.

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