EUR/USD Weekly Price Forecast – Euro dress lower for the week

The Euro fell a bit during the trading week, slicing through the 1.13 level. The Friday session was a bit of a flush lower, but we have major support underneath so I think it’s going to take a bit more momentum to finally break down. The 61.8% Fibonacci retracement level is near the 1.12 handle, so that should offer a bit of support as well. We may need to build up enough momentum to finally break down.

EUR/USD Video 18.02.19

The German economy is softening, just as the Italian economy is and technical recession. Overall, I think that the Euro falling as a result of these issues more than anything else as Europe looks to be the weak link in the global economy at the moment. Beyond that, the Federal Reserve on the other side of the Atlantic is softening its stance on monetary policy, so it’s a bit difficult to suss out which is going to be the main driver. It really comes down to the week, as attention goes from one direction to the other. There is a massive amount of support underneath though, so I think given enough time it’s likely that the buyers will return. That being said, it’s very difficult to start going long here. I think you are probably best waiting for some type of longer-term signal, something that we do not have quite now. If we do bounce from here, the 1.15 level above is a major resistance barrier. Expect a lot of volatility regardless.

Please let us know what you think in the comments below