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.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US