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

Euro vs US Dollar Weekly Technical Analysis

The euro initially rallied rather significantly during the course of the trading week piercing the 1.10 level above. However, we have since dropped rather significantly from there and it looks like we are trying to hover around the 1.09 level. Keep in mind that the 1.10 level previously has been massive resistance, so it makes a certain amount of sense that sellers came in and picked up the US dollar. If we break down below the bottom of the candlestick for the week, then I think it’s likely that we will go down to the 1.08 level.

Breaking down below that then opens up a move to the 1.07 level and so on. This is a pair that goes back and forth between big round figures, and therefore I think you have to look at this through the prism of short-term trading. When you look at the last couple of years, we’ve essentially gone nowhere. That’s not a huge surprise. Both of these central banks are rather wishy-washy with their monetary policy, although recently the Europeans have actually cut.

It looks now as if the Federal Reserve is going to do the same. So now there’s really going to be a situation where it’s the status quo. And until something changes in the fundamentals, I just don’t see any reason for this market to move drastically. However, obviously there are a lot of large round figures that you can pay attention to on the chart to guide you along the way. Longer term traders though, you’re probably looking at a neutral or flat market.

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