EUR/USD Weekly Price Forecast – Euro Showing Signs of Exhaustion

The Euro has gone back and forth during the course of the week, showing signs of confusion as we are forming a relatively neutral candlestick. The 1.19 level continues to look very resistive as it extends towards the 1.20 level. There is an entire area of selling at that point, and at this juncture it should be noted that the Euro looks “tired”, and therefore could pull back from here. There are certainly are a lot of concerns out there that could drive money back into the United States dollar, so I would not be surprised at all to see this market reached towards the 1.17 level underneath.

EUR/USD Video 14.09.20

Underneath, the market is likely to continue to see a move towards the 1.15 handle if it does get broken down, and that is a major support level just waiting to happen. All things being equal, I believe that we continue to go back and forth but it seems as if there is a little bit more negativity now than there once was. The US dollar continues to be soft in general, but we are getting close to the major trend line on the US Dollar Index, and therefore it is possible that we could see the greenback rally again. However, if we break down below the uptrend line, which should coincide with the 1.20 level on this chart, we could see the US dollar get absolutely crushed. At this point though, the market looks as if it is exhausted so I would not expect big moves on weekly charts right away.

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