EUR/USD Weekly Forecast – Euro Testing the Bottom of the Channel

EUR/USD Forecast Video for 28.08.23

Euro vs US Dollar Weekly Technical Analysis

The euro has initially tried to rally during the course of the week but then fell later as we continue to see a lot of concerns enter the market. With the Jackson Hole Symposium taking center stage on Friday, it’s no surprise that we seen a lot of noise. At this point, it simply prudent to adopt a “wait and see” attitude in the market, as there are far too many questions to ask at the moment. If we can break above the 1.0950 level, it’s likely that the euro continues to go much higher, and at that point in time would almost certainly continue to follow the overall consolidation channel that I have marked on the chart.

On the other hand, if the market were to break down below the 1.07 level, maybe the 1.0650 level, then we start to see a lot of selling pressure, and it’s possible that we could see a return to massive US dollar strength. I do believe that the next week or 2 will settle everything, so longer term traders need to be very cautious at this point, because not only do we have the confluence of the Jackson Hole Symposium and the end of summer, but we are at a technically important level as well.

Keep an eye on interest rates, interest rate markets will tell you exactly what’s going to happen, as divergence between the German and American bonds could really kick this market into motion over the next several weeks. If interest rates rise in America but don’t necessarily in the European Union, that will be the death knell for the euro, at least for the rest of the year.

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