EUR/USD Weekly Price Forecast – Euro Powers higherThe Euro had a good week by the time it was all said and done, as we reached towards the 1.3125 handle. Ultimately, this is a market that has been in a range for some time and quite frankly this rally was needed to give a bit of hope to the Longs.
The Euro rallied significantly during the week, using the 1.12 level as massive support yet again. The fact that we have seen this rally suggests that we will stay within this range, but that doesn’t necessarily mean that it’s going to be the easiest trade to hang onto. You might be stretched to try to trade this from the weekly chart, but the daily chart could offer plenty of opportunities. When you look at this chart, you should think of it as a guideline on how to trade smaller trades.
EUR USD Forecast Video 15.04.19
However, if we can break above the 1.15 handle on a weekly close, then a longer-term traders will come in and start buying and aiming for the 1.18 level. The 1.12 level continues to prove it’s resiliency, and therefore should be respected. If we were to break down below that level significantly, then the market is very well open to the idea of going down to the 1.10 level. It would not only be breaking a major support level but would also be breaking the 61.8% Fibonacci retracement level, something that doesn’t happen every day on the weekly charts. Obviously, that would be a very bearish turn of events.
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My base case scenario is that we simply go sideways in general for the time being though, so I’m not overly concerned about this pair. I think the market will continue to offer plenty of range bound trading opportunities as there is no catalyst one side or the other to push this market drastically.
Please let us know what you think in the comments below