EUR/USD Weekly Price Forecast – Euro rallies

The Euro rallied a bit during the week, breaking above the top of the hammer from the previous week. This is a very positive sign as the hammer set itself up right at the 1.1250 level, an area that has been very important, and it reliably supportive over the last several months. Beyond that, it was an area that was previous resistance that seems to be holding as well.

EUR USD Forecast Video 25.02.19

When you look at the longer-term chart, we are also trading just above the 61.8% Fibonacci retracement level, and therefore I think there are plenty of reasons to think that the pair is going to rally. However, the 1.15 level above has been very resistive so I think this will simply be a continuation of the overall consolidation area that we have been in. Honestly, I believe that this is a bit of a basing pattern but I also think it’s going to take some time to play itself out. Quite frankly, with the Federal Reserve looking to be very dovish, it makes sense that the greenback would lose some strength. However, at the same time we have the European Union releasing horrible economic numbers, giving the US dollar a bit of a break.

If we were to break down below the 1.1250 level, then we will more than likely continue to drive. That’s a very supportive level though, so I find it very unlikely to happen. That doesn’t mean that we shoot straight up in the air, I think this is going to be more of a grind than anything else.

Please let us know what you think in the comments below