EUR/USD Weekly Forecast – Euro falls after dovish comments

The Euro fell rather hard during the trading week, especially on Thursday after dovish comments coming out of the ECB press conference. The concept of rate hikes has been pushed out until next year at the very least, and at the same time more lending operations have been started for European banks, both very dovish signs. However, after we broke down through the 1.12 level we started to see buyers jump back in and fight.

EUR/USD Video 11.03.19

The jobs number disappointed in the United States, and that could have been part of the help, as we have seen the Federal Reserve be taken out of the picture. I suspect at this point we are looking at a major fight as this is the 61.8% Fibonacci retracement level on the larger move. That being the case, it looks as if we are trying to hold the line, and therefore we may get a bit of a bounce. Either way, both of the central banks are going to be very dovish, and as a result it’s very unlikely that we are going to break out with strength. That being the case, the market looks very likely to remain choppy and difficult to deal with. Longer-term traders probably won’t have much use for this market to be honest. Until things change, this continues to be a short-term traders type of environment, and therefore a longer-term traders could be trying to build up a position here, but recognize that it’s going to take a lot.

Please let us know what you think in the comments below