EUR/USD Weekly Price Forecast – Euro continues to hoverThe Euro continue to hover during the week, going back and forth as there is a lot of uncertainty out there. Ultimately, the Federal Reserve and the ECB are both looking very dovish, so it causes a bit of confusion. Ultimately, one should take a look at the greater economic situation to see where the next likely move is.
The Euro fell a bit during the week, but nothing spectacularly. With that in mind I think that we continue to see a lot of choppy behavior, but obviously there is a lot of negativity in this market. All one has to do is look back at the last couple of years to see just how choppy this market has been, but with a negative slant. If we can break down below the 1.10 level, then the market can come completely undone, reaching down towards the 105 EUR level.
EUR USD Forecast Video 26.08.19
Rallies at this point should be selling opportunities at the first sign of exhaustion, as the market continues to find plenty of reasons to run to safety, which of course the US dollar is quite often used for. Not only that, we have the US Treasury markets which attract a lot of attention as well. Ultimately, I believe that this market should continue to find sellers not only below the 1.10 EUR level, but also near the 1.12 level above. I would need to see a serious pivot by the Federal Reserve to see this market turned around and rally, and quite frankly that isn’t likely to happen after the speech that was delivered in Wyoming during the Friday session. With that, I believe that the market will grind itself lower, but the keyword in this analysis is probably going to be “grind.”
Please let us know what you think in the comments below