EUR/USD Weekly Price Forecast – Euro rallies during the weekThe Euro rallied a bit during the week, testing major resistance in the form of the 1.15 handle. If we can break above this level, that would of course be very strong sign but I see a massive amount of resistance above.
The Euro rallied significantly during the trading week, reaching towards the 1.15 handle above. I think there is a significant amount of resistance built into that area, so it makes sense that maybe we pull back a little bit here. John that, it’s a holiday week, so it’s hard to imagine a scenario in which we get a lot of action. If we do get a daily close above the 1.15 handle, that could send this market towards 1.18 level and would confirm the 61.8% Fibonacci retracement level offering support.
EUR/USD Video 31.12.18
The alternate scenario of course is that we roll over from here and go looking towards the 1.12 level again, which makes sense considering there are a lot of concerns around the world, and of course the dollar will react accordingly. The Euro has to worry about the Brexit, so that of course is going to be a major issue as well. I think at this point it’s likely that the market participants will continue to see a lot of choppiness, so it’s difficult to put money to work for a longer-term move.
I think that the first couple of weeks in the new year will be difficult to deal with and could cause a lot of issues when it comes to directionality, but we will eventually get that impulsive candle that tells us which way this thing is going to move for the next several months. Be patient, you should be able to discern this within the next few candlesticks.