EUR/USD Weekly Price Forecast – Euro Continues to Consolidate

The Euro has rallied initially during the week but then fell to crashed into the 1.08 level before bouncing again. Ultimately, this is a market that seems to have a lot of noise attached to it, but I think that starting to go by the wayside. Ultimately, the 1.10 level offers a lot of psychological resistance as well as structural, and the 1.08 level underneath offers a significant amount of support. In the meantime, I think that longer-term traders are probably going to be on the sidelines as this pair tends to chop back and forth, offering very difficult trading conditions as high-frequency traders are so highly attracted to this market.

EUR/USD Video 20.04.20

Ultimately, this is a market that I think continues to see a lot of that back-and-forth behavior, but if we can break above the 50 week EMA then I think the market probably goes looking towards the 1.12 handle, possibly even the 1.13 level after that. To the downside, I think the 1.0650 level offers support, and if we were to break down below there the most obvious target at that point would be the 1.05 handle as the level has been important in the past, but I think it’s going to take some type of serious move to break out of this tight range that we are in over the last couple of weeks. We are simply calming down and getting back to the normal behaviors of this market.