EUR/USD Weekly Price Forecast – Euro Continues to Bounce Around in Down Week

Christopher Lewis
Updated: Jun 21, 2024, 21:15 GMT+00:00

The euro has been somewhat noisy this week again, but in the end – has found more selling pressure than anything else. At this point, I think we have a situation where the euro is trying to get to the lower reaches of the overall longer-term consolidation zone.

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Euro vs US Dollar Weekly Technical Analysis

Looking at the weekly Euro chart, you can see that we initially tried to rally but then fell out of bed for the week as it looks like the euro is going to continue to suffer at the hands of the US dollar. Now, having said that the reality is that traders continue to see a large range bounding market. And therefore, I think you have a scenario where the best you can do is probably look at the market through the prism of 100 point levels that we just kind of bounce back and forth between. The bottom of the range is the 1.05 level while the top of the range is the 1.10 level.

The candlestick for the week suggests that perhaps there is more downward pressure and I think we more likely than not will continue to drift towards the bottom. If we were to break down below the 1.05 level, then it could really open up the trap door and therefore drop down to the parity handle. On the other hand, if we turn around and rally and perhaps recapture the 1.08 level, then it opens up the possibility of the market trying to get back to the 1.09 level.

But quite frankly, I think we have a lot of questions as to what is going to be happening in Europe because we have interest rate cuts. But at the same time, the Federal Reserve has remained stubbornly tight. Inflation in America is still higher than it needs to be. So with that, it does strengthen the US dollar.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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