EUR/USD Weekly Price Forecast – Euro looks broken

The Euro continues to grind lower, reaching towards the 1.09 level during the week. However, the market seems fundamentally broken at this point and it seems as if we have much lower to go longer-term.
Christopher Lewis
EUR/USD weekly chart, September 30, 2019

The Euro has broken down to a fresh new lows during the week, reaching towards the 1.09 level. At this point, it looks very likely that we will continue to see a lot of trouble in this area, and it’s likely that traders will continue to look upon the Euro with skepticism as the EU seems to be going into quite a bit of economic trouble, perhaps even seeing a recession in Germany at this rate. If that does in fact happen, that would be a very negative turn of events for the Euro as Germany is such a huge part of the GDP of the European Union.

EUR USD Forecast Video 30.09.19

With that in mind, it also looks as if there is a gap below that need to be filled near the 1.0750 level. Initially, that would be my longer-term target for any short positions that you have, and then perhaps even the 100% Fibonacci retracement level underneath there which is certainly a longer-term call, as this pair doesn’t exactly move very quickly most of the time. With that in mind, it’s very likely that we continue to see a lot of back and forth action, but clearly rallies continue to be sold.

With all of that being said, this does tend to be more of a short-term trading type of environment, unless of course you are extraordinarily patient. It will certainly take a lot of patience to realize the longer-term gains that I’m talking about, but it certainly seems as if that’s where the market is trying to get to.

Please let us know what you think in the comments below

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