EUR/USD Weekly Price Forecast – Euro Finding Resistance Yet Again

The Euro has spiked during the course of the week again, breaking above the 1.23 level. However, the market has pulled back from there and formed a bit of a shooting star. At this point, it looks as if we are going to continue to struggle to go higher, due to the fact that we formed a shooting star during the previous week. This certainly raises a bit of a red flag, but I do not necessarily think that the Euro is suddenly going to collapse, rather I think it is probably a bit overextended at this point.

EUR/USD Video 11.01.21

To the downside, the 1.20 level underneath should be significant support, extending down to the 1.19 level. Quite frankly, if we pull back to that area, I think there will be a lot of buyers and that type of pullback probably is very reasonable and could be good for the market. After all, we have gotten a bit overextended so there is a likelihood of the market falling, only to find buyers yet again. The 1.19 level underneath being broken would be a very negative turn of events, but the other scenario is that we break above the top of the candlestick, which of course could send this market looking towards 1.25 handle.

That being said, I think it is much more difficult to rally from here, and I think that choppiness will probably continue to be the overall attitude of the markets. Because of this, I think you are probably better off waiting for that previously mentioned pullback as it is much better set up.

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