EUR/USD Weekly Price Forecast – Euro Powers higherThe Euro continues to struggle in general, as the market has been very choppy. That being said, we have broken above the 200 day exponential moving average, something to pay attention to.
On the daily chart, we are above the 200 day EMA and have held for several days. It is because of this that I think the Euro is in the process of a trend change. This makes quite a bit of sense though, because if you think about it the Federal Reserve has changed its entire attitude and that should drive down the value of the US dollar overall. As the Euro is the quintessential “anti-US dollar” currency, this is where money will go.
EUR USD Forecast Video 01.07.19
Clearing the 1.1350 level was a significant victory for the bulls, and now the next target will be the 1.1450 level. It may take several weeks to finally break above there, but I do recognize that there is a significant amount of resistance extending from there to the 1.15 handle. Once we clear the 1.15 handle, it’s very likely that the entire world will start to jump on one side of this trade and the trend will shift to the upside. I believe that personally we are in the middle of doing that move, and that is something that is generally a messy affair and can take some time. With that in mind, recognize that you are going to need relatively loose stop loss placement in order to take advantage of this play. To the downside, I think that any break down from here is probably going to end up being a significant buying opportunity if you are patient enough, but you may need to find that opportunity on a smaller time frames such as the daily chart.
Please let us know what you think in the comments below