EUR/USD Weekly Price Forecast – Euro Gives Up Early Gains to Show Signs of Weakness
The Euro has initially rallied during the course of the trading week to reach towards the 1.150 level, an area that has been significant resistance. At this point in time, the market looks as if it is going to try to close towards the lows of the week, as we are threatening the 1.1750 region. Breaking down below there, the market is likely to go towards the 1.17 level. After that, then you have the 200 week EMA which is sitting just above the 1.16 level, an area that had been major support previously.
EUR/USD Video 20.09.21
Rallies at this point in time should continue to be selling opportunities, at least until we can break above the 1.19 level. That being said, this is a pair that even if you are a longer-term trader, you are probably going to be better served looking on shorter-term charts for entries. The Euro tends to be very choppy in general, as this is the most widely traded currency pair by far. Furthermore, high-frequency trading has entered the realm of the EUR/USD currency pair, so that does have a little bit of an effect as well.
At this juncture, we are still very much range bound, but I think what we are going to see is a lot of back and forth choppy behavior. This is a market that is highly influenced by the bond market in the United States and of course the Federal Reserve. There are now talks of tapering gaining momentum in the United States, so that obviously could have an effect on the greenback itself. In general, this is a market that is slumping lower, but it does not necessarily mean that we are going to fall apart.
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