EUR/USD Weekly Price Forecast – Euro Continues Same ConsolidationThe Euro initially fell during the week but found support again at the 1.17 level. This is an area that has been important for a couple of weeks now.
The Euro initially pulled back during the week, reaching down to the 1.17 level before recovering a bit and showing signs of life again. By doing so, we have formed a slightly bullish candlestick, but at this point it looks as if we are simply killing time. The market had surged higher to get to this area, but now has shown itself to be a bit cautious. This makes sense because we had overextended the rally. However, I have a couple of levels that I am paying attention to for the next trade.
EUR/USD Video 17.08.20
If we break above the 1.19 handle, it is very likely that we will go looking towards 1.20 level, followed by the 1.25 level. Ultimately, that is my longer-term target, the 1.25 level. This does mean that we get there quickly, and quite frankly I would expect another week or two of this sideways action due to the fact that we are at the end of the vacation season, which is typically a very slow time in the FX markets.
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If we were to turn around a break down below the 1.17 level, it is likely that the market would break back down towards the 1.15 handle. Having said that, I would not be a seller that point I would simply look for value underneath. I believe that there would be a lot of buyers in that general vicinity, and it would make sense that value hunters would come back into the picture. We are most certainly in a very bullish trend at this point, but it has gotten a bit overdone. Simply waiting for value is the best way to go.
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