EUR/USD Weekly Price Forecast – Euro Bounces From Lows of The Week

The Euro has been all over the place during the course of the week, due to the fact that we are consolidating, and of course the ECB had members walking back the value of the Euro by suggesting that further easing could be coming down the road. Currently, the market looks as if it is essentially stuck between the 1.20 level on the bottom and the 1.23 level on the top. This week’s candle is a supportive looking candlestick, but we also have a couple of massive shooting stars above. When I see wicks firing off in opposite directions on weekly chart, that typically means that we are heading into a significant amount of consolidation.

EUR/USD Video 01.02.21

Looking at this chart, we have seen a couple of massive moves followed by choppiness previously, and that is typical of this pair anyway. With that being the case, I believe that we are simply killing time in about a 300 point range, so I believe that range bound trading is probably the way to go going forward, perhaps off of the daily chart or even the four hour chart. As far as the weekly chart is concerned in this particular pair, I tend use it as a roadmap more than anything else. After all, this pair does quite often go sideways more than anything else, and therefore you need to look at the bigger picture to see where the smaller moves happen. At this point, I do not see a catalyst to break out of this 300 point range, so I think that we will have a couple weeks of sideways action more than anything else.

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