EUR/USD Weekly Price Forecast – Euro Rallies but Gives Up Some Ground

The Euro has rallied during the course of the week to slam into the previous uptrend line but have given back quite a bit of the gains. By doing so, it looks like we are still going to continue to struggle to rally from here, and it is very likely that in a “risk off scenario” we could see the continuation of a pullback. That being said, I think that the target could be the 1.15 handle given enough time, because quite frankly the measured move suggest that on the daily chart. Furthermore, it was the scene of a major breakout that we have yet to retest, something that markets tend to like to do.

EUR/USD Video 05.10.20

On the other hand, if we were to break back above that uptrend line then we face even more resistance. This is why I do not like the idea of buying the Euro at this point. This is not to say that we cannot go higher, but we need some type of catalyst to make that happen. Currently right now we do not have that, so I would not hold my breath. All things being equal I think we are going to continue to drift lower for the next several weeks, but I am not necessarily expecting some type of significant turn of events to have this thing go straight through the air, with perhaps the one exception of a potential Brexit deal, although we have been waiting around for that over the last three years.

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