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EUR/USD Weekly Price Forecast – Euro breaks down for the week to test big figure

The Euro broke down a bit during the week, to reach towards the 1.10 EUR level, an area that would make quite a bit of psychological importance to traders around the world. However, the overall downtrend should continue, although it is very choppy.
Christopher Lewis
EUR/USD weekly chart, September 23, 2019

The Euro fell a bit during the trading week, reaching down towards the 1.10 level. That is an area that will attract a certain amount of attention because it is a large, round, psychologically significant figure, but at this point in time it does look like it will be tested and perhaps break down through there. The previous two weeks should offer support, and therefore if we were to break down through those candlesticks, the market should unwind down towards the 100% Fibonacci retracement level, looking towards the 1.04 EUR region.

EUR USD Forecast Video 23.09.19

At this point, the market is probably going to continue to sell rallies, but for longer-term traders it’s going to take an incredible amount of patience in order to take advantage of this trend. The market has been very choppy to say the least but when you look at the longer-term attitude it certainly is negative. Beyond all of that, the European Union will continue to suffer poor economic figures and of course the Germans and Italians possibly entering a recessionary environment does nothing to help the idea of stability in the EU. Beyond that, the European Central Bank is very likely to step into more quantitative easing, and perhaps even more negative yields. With that, the longer-term trend should continue to be crucial to follow. It might be easier to trade this market from a shorter-term aspect though, so at this point in time longer-term traders may be a bit discouraged.

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