EUR/USD Weekly Price Forecast – Euro Runs Into Resistance

The Euro has initially broken through the 1.12 level during the week but then gave back the gains to show signs of weakness. That being said though, when you look at the charts it does seem as if we are trying to break out to the upside. When traders come back this coming week, we will see more liquidity in the market in probably much more reliable movement. It should also be noted that the US dollar got a bit of a boost due to “risk off” trading as the Americans killed an Iranian general. In that sense, the weekly candlestick is a bit skewed.

EUR USD Forecast Video 06.01.20

That being said, if we can break above the top of the candlestick, I think that the Euro will probably go looking towards the 1.14 handle or so. To the downside, if we break down below the bottom of the candlestick then we could go looking towards the 1.10 level, especially if there is some type of shock to the system out there or perhaps some type of major reaction by the Iranians to this military action. With this being the case, there are a lot of different moving pieces out there so I would pay attention to this candlestick and treated as a “binary event”, telling you which direction to start buying or selling until then, there’s not much to do and you should also keep in mind that this will be the first week of the year that has something close to real volume.

Please let us know what you think in the comments below