EUR/USD Weekly Forecast – Euro Falls Again

The Euro has fallen during the week, as we continue to see the US dollar strengthen overall against a list of currencies. The Euro has been taking a large brunt of the pressure and should continue to do so. The 1.18 level is an area that has been important for a while, as the market has bounced from there multiple times. The candlestick for the week is very negative, so it is possible that we could see a drift down to the 1.17 level, and then the 1.16 level.

EUR/USD Video 19.07.21

The 1.16 level has been massive in its support of the market, so this is an area that if we break below, that could be a significant turn of events, leading to more of a deep crash. This would obviously be a very ‘risk off’ situation, and therefore you would probably see a lot of similar situations. In that sense, it becomes a risk barometer for the overall health of risk appetite. The US dollar is likely to be a big story this fall, and we are starting to see that play out here.

As far as buying this pair is concerned, I would not be interested in doing so until we clear the 1.20 level. The level being broken could open up the possibility of reaching 1.23 above. The market doing that seems to be a bit of a stretch at this point, so I am not looking for that to be an issue, especially as we have gotten past the Federal Reserve Chairman testifying in front of Congress. He was somewhat dovish, but this did not seem to effect the greenback overall. That being the case, it looks as if the market is trying to tell us something.

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