EUR/USD Weekly Price Forecast – Euro Gives Up Early Gains for the Week

The Euro has initially tried to rally during the course of the week but gave up gains near the 1.16 level and the 200 week EMA. The 200 day EMA of course is flat as you can see, and therefore it suggests that we are going to continue seeing a lot of resistance above as there is no real momentum in the market at the moment. That being said, if we were to break down below the 1.15 handle, then the bottom can follow. I do not necessarily think that happens easily but breaking down below there would attract a lot of attention.

EUR/USD Video 08.11.21

Alternately, if the Euro was to break above the 1.16 level on a daily close, and most certainly on a weekly close, then I think we have an opportunity to see this market catch itself and turn things around. All things been equal, the European numbers do look better than they once did from an economic standpoint, but this chart does not look that good. If we close with this type of candlestick, it is an inverted hammer, and that of course would be a potentially ominous sign.

With that being said, I think we have a lot of choppy behavior ahead of us, but we should get some type of longer-term signal forming rather soon. It simply a matter of waiting for the market to tell you when to get involved and following. The markets continue to try and reprice both inflation and the reopening trade at the same time, making this messy to say the least.

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