EUR/USD Weekly Price Forecast – Euro Pulls Back From Trendline

The Euro has initially tried to break above the previous uptrend line for the week, but then broke down towards the 1.17 level. That being the case, the market is likely to see a lot of choppiness going forward. The market breaking down below the candlestick for the week probably opens up a move towards the 1.16 handle, and then eventually the market will go looking towards 1.15 handle. That is an area that is going to be interesting, mainly because on the daily chart you can see the 200 day EMA reaching towards it. Beyond that, the 1.15 level is of course very interesting due to the fact that it is such a big figure.

EUR/USD Video 19.10.20

The European Union is starting to see a lot of downward pressure economically due to the lockdowns coming, and it now appears that stimulus is probably going to be delayed in America. That could lead to a potential pullback, and quite frankly when you look at this chart you can see quite easily that it has gotten a bit ahead of itself anyway, so a pullback makes sense.

Even if we do break above the uptrend line, the market is likely to see a lot of noise all the way to the 1.20 level, so even on a breakout I would still be a bit suspicious because there are too many problems with the Euro region, and of course the technical “rounding top” that had formed. If we were to break above the 1.20 level, the Euro is going to take off.

For a look at all of today’s economic events, check out our economic calendar.