EUR/USD Weekly Price Forecast – Euro forms negative candle

The Euro initially tried to rally during the course of the week, and we even broke above the 1.12 level. That’s an area that had previously been massive support so it’s very likely that it should be significant resistance. With that being the case, it’s very likely that we are going to see further declines but keep in mind that this pair tends to chop around more than anything else. Longer-term traders have been selling but you have to be extraordinarily patient to take this trade to the downside. All things being equal though, it has worked out quite nicely.

EUR USD Forecast Video 06.05.19

To the downside I suspect that the 1.10 level underneath will be a target, which of course makes sense as it is a large, round, psychologically significant figure as well as a place where we have seen the lot of work done that. If we were to break down below there, the market really could start to unwind. For the longer-term trader though, this is not one of the better currency pairs to trade. We have a couple of central banks that are both very dovish, although the Federal Reserve is “less dovish” than the ECB. In fact, the Americans are essentially neutral, which is at exactly compelling, but at least is a bit better than what we are seeing in Brussels. I continue to sell rallies until we get some type of major change in the attitude of the markets. Until then, I believe that you are going to be better served using the daily charts to short the market.

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