EUR/USD Weekly Price Forecast – Euro breaks support during the week

The Euro broke the 1.12 level to the downside, showing signs of US dollar strength. By doing so, it looks very likely that we are going to continue to drop from here, perhaps reaching down to the 1.10 level which is much more supportive. I believe that most of the signals will occur on the shorter-term charts though, as the 1.12 level above should be resistance. That’s an area that if we see exhaustion on short-term charts, we can start selling. However, if we were to break above the 1.1250 level, then a longer-term long position could be triggered. Should be a massive amount of resistance at the 1.15 level above, so keep that in mind.

EUR USD Forecast Video 29.04.19

I don’t know that we can break down below the 1.10 level, at least not in the initial move. That is an area that I think will continue to attract a lot of attention, and quite frankly with the ECB being as loose as it is, it’s very likely that the Euro will continue to struggle. This is an area that was difficult to sliced through, so the fact that we did so is of course very telling.

If we were to break down below the 1.10 level, that would be extraordinarily negative. It’s unlikely that the level gets broken, but if it does expect a “flush” much lower. The move higher of course would be much slower as it would climb the proverbial “wall of worry.”

Please let us know what you think in the comments below