EUR/USD Weekly Price Forecast – Euro choppy and negative

The Euro try to rally initially during the week but turned around of form a bit of a shooting star looking candle. This was preceded by another shooting star, and it looks as if we are going to go testing the support level at 1.15 underneath. Because of this, I think that we could go even lower, perhaps testing the hammer from three weeks previously. That being the case, I would expect some short-term weakness but the question now remains whether or not the overall support can hold? I think the next couple weeks we are going to get the answer but it is going to be very difficult to trade this market from the longer-term perspective until we can either break the back of that hammer underneath or break above the 1.18 level above which should be resistive.

Beyond that, traders are now coming back from holiday so this tends to be very erratic couple of weeks, so I think short-term trading is about as good as this pair gets right now. Once we get through that, then we should have more clarity but right now it certainly looks as if we are struggling. You could make an argument for head and shoulders pattern that is tilted, and if that’s the case we should break down rather significantly. However, the neckline is at the bottom of the hammer from three weeks previous, so it’s essentially the same analysis in that direction.

EUR USD Forecast Video 10.09.18