EUR/USD Weekly Price Forecast – Euro Bounces From Major LevelThe Euro bounced from the crucial 1.10 level during the week, an area that has been very reliable for the last couple of months. The market has been bouncing around in a 200 PIP range for some time, so therefore it makes sense that we simply do more of the same.
The Euro has initially fallen during the week, but then found enough support at the crucial 1.10 level to turn things around and show signs of life again. This is a currency pair that is struggling to deal with two central banks that are both very dovish at the moment. This should continue to favor more sideways action than anything else, as the market participants are grinding away in more of a high-frequency trading type of scenario. That being said though, we are still very much in a downtrend longer-term, but the last couple of months have seen more of the usual grind that you get with the EUR/USD pair.
Breaking down below the 1.10 level would be very negative and could open up the door to the 1.08 handle, just as a break above the 1.12 level could open up the door to a move towards the 1.14 level after that. All things being equal, I think that it is going to be a difficult market to hang onto positions for long time periods, but it has been relatively stable in the sense that you can play the range between 1.10 on the bottom and 1.12 on the top relatively safely. This is a market that attracts a lot of choppiness, and that’s exactly what we are seeing. I don’t see much of a change here, but I think the next couple of weeks could be slightly positive, but not overly so and I do not anticipate a breakout anytime soon.
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