EUR/USD Weekly Price Forecast – Euro has miserable week

The Euro fell during the week, having a bit of a miserable run as we are closing much lower than we opened. However, there is a significant amount of support underneath at the 61.8% Fibonacci retracement level as you can see did noted by the Fibonacci retracement to on the chart, and of course the yellow ellipse highlighting where there should be support based upon market structure.

EUR USD Forecast Video 17.12.18

That being said, if we break down below that level I think that we will go looking towards 1.10 level. I anticipate that longer-term traders are probably going to stand on the sidelines between now and the new year, because there are so many questions out there when it comes to the Brexit, and of course the miserable European economic figures. Beyond that though, there are a lot of buyers underneath so one would have to think that perhaps we could see a significant bounce from this area, so the longer-term trader is probably better served waiting until after New Year’s Day and seeing how the market reacts to the 1.11 area underneath before putting serious money to work. I believe that we are going to see a lot of choppiness with a slightly negative bias over the next couple of weeks, but it’s not necessarily something that you can trade with the longer-term bias in mind. Short-term scalping to the downside does work though, so it just doesn’t look like a longer-term traders type of scenario right now.