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EUR/USD Weekly Price Forecast – Euro has rough week as we collapse

The Euro initially tried to rally during the beginning of the week but we then broke down significantly to reach towards the 1.10 EUR level underneath. This is a very negative looking candle stick and it could lead to much more.
Christopher Lewis
EUR/USD weekly chart, August 19, 2019

The Euro initially tried to rally during the trading week, as we have broken down afterwards. With that being the case, the market is likely to reach down towards the 1.10 level underneath which should cause a significant amount of support. If we break down below that level, and it certainly looks as if we could, that could send the Euro plummeting at that point.

EUR USD Forecast Video 19.08.19

With the European Central Bank almost certainly to liquefy the markets even further, it makes sense that we are going to continue to break down. At this point, I believe that rallies are going to be selling opportunities and therefore I think it’s only a matter of time before we see a bearish pressure reenter the situation. The German economy is struggling, and that being the case it’s likely that the Euro is going to pay the price. At this point, the market looks likely to favor the US dollar, not only because of the economic concerns, but also because of the Treasury market has been attracting a lot of flow due to the massive amount of fear out there around the world. This is a typical correlation, so it’s very likely that we continue to see this same dynamic. Ultimately, rallies are to be faded as the European situation deteriorates. Not only do we have problems with the German economy, but European banks are starting to get scrutinized as well, and at this point I think the currency markets are starting to play out.

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