EUR/USD Weekly Forecast – Euro Struggles Holding on to Gains

EUR/USD Forecast Video for 02-01-2024

Euro vs US Dollar Weekly Technical Analysis

As you can see, the Euro did rally this week, but it really didn’t leave a lasting impression. In fact, we are forming something close to a shooting star, and even though we are above the 200-week EMA, this doesn’t necessarily look overly bullish anymore. This doesn’t necessarily mean that we have to sell off, just that you need to keep your eyes open in case something changes suddenly.

It’s not to say that we can’t go to the 1.1250 level. And in fact, I do believe we will eventually get there. But the question then becomes what happens once we approach it. The 61.8% Fibonacci retracement level is there. And it’s an area of previous resistance as well as support. So I think that might eventually be our destination.

But I anticipate that going into 2024, the market may have gotten ahead of itself with the idea of the US dollar falling apart. In this environment, I think we have a little bit more in the way of bullish pressure, but the 1.1250 level is an area I will be watching very closely because I think the tone of the entire year is going to be found in that region. If we can break above the 1.1250 level, that would be extraordinarily bullish for this market, and we would almost certainly go to the 1.15 level. However, it’s starting to look a bit like we have seen over the last couple of years, where the Euro will try to break out but fail and then pull back to form a range for the year. I will be watching that 1.125 level very closely.

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