EUR/USD Weekly Price Forecast – Euro breaks supportThe Euro fell hard during the week, after initially trying to rally. By breaking through the 1.15 level we are testing a major support region. At this point, it looks as if it could break down through there, sending the Euro much lower.
The EUR/USD initially tried to rally during the week but found the lot of selling pressure as it tried to rally. By finding that pressure, we had seen the market reverse and break down below the 1.15 handle, which of course is a very negative turn of events. At this point, I suspect sellers will be aiming for the 1.13 level, an area that has been rather important in the past. Longer-term traders could be looking for some type of sign of life, but now there are concerns about contagion with Turkish banks, and the ever evolving story of how the union doesn’t work.
At this point though, we can only play what were given and it looks as if the downside could start to flex its muscles again. As a longer-term trader I would wait for a weekly candlestick to confirm support before putting any money to work. With that in mind, I would wait for a hammer or a return to above the 1.15 level on a daily close before buying. As far as selling is concerned, a break of the weekly candle would suffice, as it would go with the overall momentum.
The question now of course is whether we get some type of positive news to lift this pair out of the EU. It’s been in short supply lately, so that is something to keep in mind. The next week should be crucial as to the final direction, but right now it certainly looks quite negative.