EUR/USD Weekly Price Forecast – Euro Continues to Bounce Back and Forth

The Euro rallied during the week after initially pulling back slightly, as we are racing towards 1.10 level. That being said, it’s a psychologically significant figure and of course the market will pay attention to that level. Ultimately, the market chops around quite a bit but typically into not being very tight in general. If we get back to normalcy, that’s probably what it’s going to look like, simply chopping around with a slight directionality to it, more than likely a bit of negativity. On the other hand, if we break out to the upside it’s possible that we could go to the 1.12 level, and then possibly the 1.15 handle after that.

EUR/USD Video 13.04.20

On the other hand, if we break down from here, we could be looking at a move down to the 1.05 level over the longer term. Looking at this chart, I do think that we probably have a little bit of an upside before we break right back down. All things being equal, this is a pair that has been in a downtrend for quite some time, but we also just recently had filled the gap near the 1.0750 level, so that should of course be significant support. That doesn’t mean we can’t break through it, just that causing a bounce from there made quite a bit of sense.

All things being equal, you should keep your position size relatively small until we make up our mind, as we are looking very undecided at the moment, and it is worth noting that while the rest of the world is beating up on the US dollar, the Euro seems to be lagging.