EUR/USD Weekly Price Forecast – Euro rolled over as Germany continues to underwhelm

The Euro initially shot higher during the week, mainly as a result of the Federal Reserve stepping away from a hawkish stance. That being the case, we have tested the 1.1450 level, which is the beginning of massive resistance.
Christopher Lewis
EUR/USD weekly chart, March 25, 2019

The Euro initially tried to rally during the week, and then shot much higher on Wednesday as the Federal Reserve stepped into the arena and suggested that an interest rate hike by the end of 2019 was all but impossible. However, we have seen a complete reversal of that which of course is a very negative sign. Ultimately, there is a significant amount of support below at the 1.12 level, an area that should continue to be very important as it is the 61.8% Fibonacci retracement level of a much larger move. However, if we do break down through there I think it’s very likely that the market could go to the 1.10 level. That being said, it is not my base case at the moment.

EUR USD Forecast Video 25.03.19

Looking at the daily charts, and I think that’s the chart that you will probably be forced to work with here, possibly lower time frames as we are stuck, I suspect that the buyers will come in relatively soon. I do not think that we are ready to break down, but I do recognize that anything is possible. The German economic numbers continue to soften, which of course is very negative for the Euro but at the same time we have the US dollar that has no central bank support underneath it. I anticipate this will continue to be a back and forth short-term traders type of situation, and therefore longer-term traders will probably be on the sidelines until we can break out of this rectangle that I have drawn on the chart.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.