EUR/USD Weekly Price Forecast – Euro rallies after initially falling during the week

The Euro rallied after initially falling during the week, showing signs of life yet again. It looks as if after the jobs number on Friday the trading community is looking to the EUR as a potential way to pick up a bit of profit.
Christopher Lewis
EUR/USD weekly chart, July 09, 2018
euro vs dollar as background

The Euro initially fell during the week, reaching down towards the 1.16 level before turning around again. It looks as if it is trying to for a bit of a bottom, if we can break above the 1.1850 level, the market is much more likely to continue going higher, perhaps reaching towards the 1.20 level. At this point, I think that the market is going to continue to look favorably upon the EUR as traders around the world continue to see a lot of concerns when it comes to trade wars, and perhaps any damage upon the US economy.

Beyond that, we have seen a reconciliation of some political forces in the European Union, which had been weighing upon the common currency. Remember, it was the Italian situation that sent it lower to begin with.

With these things out the way, I believe that this market probably rallies, as the 1.15 level underneath is a massive support level. Ultimately, I believe that it will end up being the bottom of the move, but if we were to break down below there it would be an extraordinarily negative turn of events and send this market down to the 1.1250 level, perhaps even lower than that given enough time as it would be such a major break of major support. I believe that the 1.25 level above will continue to be important, so I think that it’s likely that we will not be able to break above there anytime soon, but certainly it can make a nice target.

EUR USD Forecast Video 09.07.18

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