EUR/USD Weekly Price Forecast – Euro rolls over for the week

The Euro initially tried to rally during the week but found enough resistance just below the 1.15 handle to form a negative candle and give back all of the gains. The Euro continues to struggle due to the Brexit, and the issues between the EU and Italy, which I think is a harbinger of future problems with other countries. Ultimately, this is a market that will favor the US dollar in the short term, mainly because we have more interest rate hikes coming from the United States, while the ECB is going to continue to be dealing with an economy that is softening and of course the problems in Italy.

EUR USD Forecast Video 26.11.18

The 1.15 level above is a massive resistance barrier, and I think at this point it’s going to be difficult to get above there. If we do though, the 1.16 level will probably be the next target. If we can break above the 1.16 level, then the market probably goes looking towards the 1.18 handle. Ultimately, I think it’s more likely that we rollover and reach towards the 1.11 level underneath, which has been massive support in the past, and I think we will continue to see rally sold on shorter-term charts. Because of this, it might be a bit difficult to trade from a longer-term standpoint, but this certainly gives us an opportunity to see the overall negativity in this market and take advantage of it on shorter-term charts. I believe there is simply far too much negativity out there for this market to rally.