EUR/USD Weekly Price Forecast – Euro Continues to See Consolidation

Euro vs US Dollar Weekly Technical Analysis

You can see that we continue to bounce back and forth, just trying to figure out what to do with ourselves. The 1.07 level underneath has offered significant support, but we have given back quite a bit of the gains. We are essentially hanging around the 50 week EMA, and I think this is an indicator that a lot of people will have to pay close attention to.

Nonetheless, I think at this point we are still very much in the same range we’ve been in for what seems like a lifetime now, between the 1.07 level on the bottom and the 1.10 level on the top. As long as we stay in this range, it’s a bit difficult for longer term traders but you can swing trade this market on the daily chart.

If we break out of this range, it sets up, technically speaking, a move of about 300 points. That being said, I do recognize that there’s an extreme resistance level near the 1.1250 level above. So, the upside could be limited. Underneath there’s massive support at 1.05. So, I think most of this year we’re going to continue to go back and forth.

And that does make a certain amount of sense, as both central banks are likely to cut rates by the end of the year. So it’s basically more fiat printing and a race to the bottom by central banks. In this environment, I am more likely to use the EUR/USD pair as a proxy for the US Dollar Index to give me an idea as to where I will be placing my money in multiple other pairs.

For a look at all of today’s economic events, check out our economic calendar.