EUR/USD Weekly Price Forecast – Euro pulls back for the weekThe Euro pulled back a bit during the week, reaching towards the 1.1380 level. However, I do see a lot of support underneath and it’s possible that we will continue to see a lot of volatility. That being the case, it does look as if we are trying to form a bit of a rounded bottom.
The Euro initially tried to rally during the week but continues to see a lot of trouble at the 1.15 handle. That being said, there is a lot of support underneath, so I think that it’s only a matter of time before we rally again, but it is going to be very choppy and noisy in the process. We are trying to turn the entire trend around, and that is always a slow and difficult process.
EUR USD Forecast Video 21.01.19
If we do break down from here, I think the 61.8% Fibonacci retracement level underneath at the 1.12 level will of course be the next area that buyers could be interested in. Overall, I believe that the buyers will come back sooner rather than later, but obviously we have a lot of concerns when it comes to the European Union as well. The Federal Reserve has changed its tune about interest rate hikes lately, and that should continue to help a lot of buyers in this market over the longer-term. However, it’s obvious that there are a lot of concerns out there, and on Friday and Italian bank mentioned that they believe the recession was coming, but quite frankly that should not be a longer-term surprise, as we have known this about Italy for some time. I believe that the market will turn around and start picking up the Euro again as we have been forming a line of bottoming.