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EUR/USD Weekly Price Forecast – Euro goes back and forth during the week at major support

By:
Christopher Lewis
Updated: Apr 5, 2019, 17:07 GMT+00:00

The Euro went back and forth during the course of the week as we continue to test major support. This major support area is crucial for the longer-term attitude, so I believe that we are at a major inflection point.

EUR/USD weekly chart, April 08, 2019

The Euro went back and forth during the week, as the 1.12 level is massive support based upon the larger move. The 61.8% Fibonacci retracement level is right at this area, so it makes quite a bit of sense. Looking at the chart, the market has been bouncing around between the 1.12 level underneath and the 1.15 level above. While we are slumping in general, I believe this is where the Euro will make its stand. That being the case, I think that if you are patient enough you should recognize gains, but you should also recognize that a move below the 1.1150 level will open the door to a potential 1.10 print. The risk to reward ratio certainly favors a bounce, but as with all things forex nothing is guaranteed.

EUR USD Forecast Video 08.04.19

Looking at the chart, it’s not until we break above the 1.15 level that you have a longer-term “buy-and-hold” situation, and I think at this point we would also need to see a lot more risk appetite, into the marketplace so that the US dollar lost strength. The US dollar is overbought though, so I do believe that will happen given enough time.

Looking at the chart, I also recognize that the 1.10 level would be extraordinarily supportive due to the large, round, psychologically significant figure. I think at this point we are getting close to a bottom, but obviously it’s going to take a certain amount of wherewithal and patience.

Please let us know what you think in the comments below

About the Author

Chris is a proprietary trader with more than 20 years of experience across various markets, including currencies, indices and commodities. As a senior analyst at FXEmpire since the website’s early days, he offers readers advanced market perspectives to navigate today’s financial landscape with confidence.

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