EUR/USD Weekly Price Forecast – Euro Bounces Hard

The Euro has rallied significantly during the course of the week to recover after the massive selloff during the previous week. However, the recovery has been nowhere near as strong as the falling of the Euro was during the previous week, so it is very likely that we are still somewhat negative, at least until we break above the 1.20 handle. The 1.20 handle seems to be a bit of a magnet, and you can even make a little bit of an argument for a potential symmetrical triangle forming, although it is a bit early to put that thesis to work.

EUR/USD Video 28.05.21

Looking at this chart, I think that we are more likely than not going to go sideways more than anything else as the summertime is going to continue to be very indecisive under most circumstances. Quite frankly, there is a bit of a “push pull” when it comes to the idea of whether or not the Federal Reserve is going to tighten or not, and I think the next month or two is probably going to focus on the idea of continuing growth worldwide, with one eye on the possibility of slowing down going into the end of the year. With this, the market probably continues to be choppy, but as the next couple of weeks go by, I may or may not choose to draw a big symmetrical triangle to determine whether or not that is the direction we are going. If not, it will probably end up forming some type of rectangle that will be a bit clearer in its orientation and levels.

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