EUR/USD Weekly Price Forecast – Euro bounces all week

The Euro went back and forth during the week, breaking below the 1.11 handle. At this point, the market has shown quite a bit of negativity as we had broken through there, so I do think it’s only a matter time before we break down. After all, the market has been grinding lower for some time, so the question now is whether or not we can keep things held up. If we broke above the top of the weekly candle stick, then it would show a potential bottoming pattern, but right now things look very precarious to say the least.

EUR USD Forecast Video 05.08.19

While the Federal Reserve did cut interest rates, the only did so by 25 points and there’s also the talk about how they are not starting an interest rate cut cycle. Because of this, it’s very likely that the market will continue to be volatile and difficult, and I think that a lot of fear is starting to creep into the marketplace. That should help the US dollar, as it is a safety currency and of course the treasury markets have been extraordinarily strong.

The 1.10 level underneath is massive support based upon psychology, but I think at this point if we break down below there it’s probably the gateway to go much lower, perhaps down to the 100% Fibonacci retracement level over at the 1.05 EUR handle. If we do rally, then we could go to the 1.14 EUR level, but right now things are looking a bit precarious.

Please let us know what you think in the comments below