EUR/USD Weekly Price Forecast – Euro Continues to Look For Momentum

Euro vs US Dollar Weekly Technical Analysis

The euro has rallied rather significantly during the course of the weekends. We are threatening the 1.09 level, which is a large, round, psychologically significant figure and an area where a lot of people will be paying close attention to. It’s obvious that they have been doing so for some time.

The large numbers continue to be a barrier in both support and resistance in this market, and I think given enough time, if we can break above the 1.0920 level or so, it could open up the possibility of a move to the 1.10 level. On the other hand, if we turn around and break down from here, the 1.08 level underneath would be significant support.

Keep in mind that this is a market that does tend to bounce from one big trigger to another, so it wouldn’t surprise me at all to see this pair go to the 1.10 level. Whether or not we can break above there remains to be seen, but really, it’s still a very neutral market. If you look at it over the last couple of years, quite frankly, it’s just been back and forth, and I think we’re looking at more of the same going forward here. I would look for fireworks, but if you are a shorter-term trader this might be an interesting market to be involved in. From a long-term perspective, I don’t expect much differentiation between these 2 currencies, because if the Federal Reserve does in fact start cutting, then it will just be the same thing as the ECB.

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