EUR/USD Weekly Price Forecast – Euro Finds Support at Crucial Level

The Euro has fallen a bit during the course of the week but then turned around to wake up yet again. By doing so, it shows just how well supported this market is, and at this point I do believe that what we are seeing here is an attempt to get back towards the 1.23 handle.

That is an area that has a significant amount of resistance built into it that extends all the way to the 1.25 handle. I think it would be difficult to break above all of that, but in general it looks like we are going to at least try to get there. Ultimately, I think this is a market that is more or less going to grind sideways in a 300 point range between 1.20 and 1.23 while we trying to build up enough momentum to make a bigger move.

The ship the candlestick is a hammer which is of course a very bullish sign and will attract a certain amount of buying pressure. Having said that, I do not necessarily see the catalyst to go much higher, due to the fact that the European Union has rolling lockdowns and of course concerns about vaccinations being distributed, and then we have the interest rates in America rising, which does make the US dollar little bit more attractive.

Having said that, I think this is more or less back and forth and noisy trading. I think it is going to be difficult to trade this from a longer-term perspective in the short term, but one would have to believe that we are trying to build a case to go higher.