EUR/USD Weekly Price Forecast – Euro rallies all week

It appears that value hunting has come back into vogue, as many of the traders that I’m talking to recognize the value of the Euro at these low levels. We have the 50% Fibonacci retracement level, the hammer from the previous week, and now a break above the 1.15 level. Those all bode well for the Euro, but this isn’t to say that we are going to go straight to the upside. I believe that we will eventually work towards 1.18 level above, which was the top of the previous consolidation, but we have a lot of noise between here and there. As we close out the week, we are facing significant resistance, so I would not be surprised at all to see a little bit of a pullback in the short term before the buyers return. However, I also recognize that the hammer from last week at the 50% Fibonacci retracement level is a very strong sign, and likely one that will attract a lot of attention from technical traders.

The Turkish crisis seems to be calming down a bit, or I should say that the market’s reaction to it is, and in the end that’s really all that matters for the Forex speculator. It seems that attention is starting to focus on other things, such as the risk appetite around the world that we currently enjoy. That should lift the Euro overall, offering value to those who seek it. However, if we were to break down below the bottom of the hammer from the previous week, that would be a very negative sign indeed.

EUR/USD Video 27.08.18