EUR/USD Weekly Price Forecast – Euro finds support againThe EUR/USD pair spent most of the week falling, but early during the Friday session in New York, President Donald Trump tweeted that he wanted to persuade the Federal Reserve to keep interest rates low. Ultimately, this caused a major surge in the value of the Euro, turning around to form a bit of a hammer.
The EUR/USD pair continued to be very choppy during trading this past week, using the 1.15 level as support and the 1.1850 level above as resistance. We ended up forming a bit of a hammer, and that of course is a bullish sign, but we also have a lot of noise in this area and quite frankly I think the markets are trying to figure out where to go from here. There are a lot of concerns and the EU, and of course Brexit. At the same time, the Federal Reserve is on track to keep interest rate hikes going forward, so this puts downward pressure. However, there is a lot of structural demand in this area, so it doesn’t surprise me that the 1.15 level has been very difficult to break down through. If we did, that would be a very negative turn of events, but I do fully anticipate that we will see a rally for one reason or another.
I think that the market may be choppy and range bound for the next several weeks though, as we are heading into the vacation season for most large traders. However, I fully admit that if we break above the 1.1850 level, the market can go looking towards the 1.20 level, followed by the 1.25 level over the longer-term. If we do break down below the 1.15 handle, I suspect that will .1250 would be the initial target.