EUR/USD Weekly Price Forecast – Euro Gives Back Initial Push

The Euro has initially tried to break above the 1.20 level, but then rolled over to show signs of weakness. The week has been very volatile, but when you look at the longer-term trend, it does make sense that we need to consolidate in this area before we break out. After all, the market is likely to see a lot of indecision at this point, because we are getting towards the election in the United States and of course there are a lot of concerns when it comes to the global financial situation and what the central banks are going to be doing.

EUR/USD Video 07.09.20

The European Union is struggling to bit in general, so it is not a huge surprise to see that we may roll over, but I believe that the 1.17 level should be massive support, and what you do not see on the weekly chart is that we are in an ascending channel on the daily chart, which has been relatively reliable, so at this point you have to think that it holds. If it does not, it is not a big deal because again, the 1.17 level should be massive support.

Looking at this chart, it is overbought and that is really the most important thing to pay attention to. Looking for value is the best way to go, but if we were to turn around a break above the top of the weekly candlestick, then it opens up the door to for a move to the 1.25 handle, which a lot of big money managers have stated publicly that they are looking for.

For a look at all of today’s economic events, check out our economic calendar.