EUR/USD Weekly Price Forecast – Euro Continues to See Sideways Behavior Longer-term

Euro vs US Dollar Weekly Technical Analysis

You can see that the euro has rallied rather significantly during the course of the trading week to show signs of life as the 1.10 level continues to loom large as resistance. Because of this, I think you have a situation where you are just simply looking to take advantage of any signs of exhaustion. This is an area where the barrier is very difficult to get above, but if we were to jump above there, it could be a very strong sign.

I think this is very likely to be a rangebound market most of this year, with both central banks being rather loose with monetary policy. That being said, if we do clear the 1.10 level on a daily close, we may have a run to 1.1150 in the cards. Otherwise, a pullback to the 1.09 level and then eventually the 1.08 level probably makes the most sense.

Both of these central banks are going to be loosening this year, so that is a recipe for lackluster trading in sideways chop, as you have seen all through last year. All things being equal, this is a market where I see a lot of noise and I believe that the situation is one where both central banks will continue to look lackluster, so I think this pair will behave in the same manner. Make sure that you look at this on longer-term charts, but perhaps enter and exit off of shorter-term charges just to be able to see your timing perform better.

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