EUR/USD Weekly Price Forecast – Euro Continues to Bang Around in Range

The Euro fell during a majority of the week but has turned around to show signs of life again. Ultimately, this is a market that continues to see a lot of back and forth in this general vicinity, and therefore it is very likely that we will see more range bound trading than anything else. However, we have a couple of definitive levels that we can pay close attention to in order to trade this market.

EUR/USD Video 10.01.22

To the upside, the 1.1375 level has been extraordinarily resistive, so we can break above there then it is obvious that the market would be ready to go higher, perhaps reaching towards the 1.15 handle, very likely even to the 1.16 level above. It is worth noting that the 50 week EMA is dropping significantly, as it is approaching the 200 week EMA.

On the downside, the 1.1225 level underneath continues to see a lot of support, so therefore if we do reach that area and break down below it, that opens up the possibility of 1.12, followed by 1.10 level rather quickly. All things being equal, this is a market that is going to continue to be very choppy and noisy, but once we get out of this purple box that I have drawn on the chart, that should give us a bit of clarity that we desperately need. Once we get that, it will almost certainly open up a much bigger move. This is an interesting play in the currency market, due to the fact that interest rates in America are rising, but it does look as if the US dollar is trying to give up gains.

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