EUR/USD Weekly Price Forecast – Euro Shows Negativity for the Week

The Euro broke down during the week but did show signs of stability on Friday, perhaps in an attempt to get flat ahead of the weekend by European traders. It should be noted that German business numbers are falling off of a cliff, and of course the trend has been down for quite some time. You can see that the market has been chopping back and forth with a negative slant over the last couple of years, and quite frankly nothing has changed other than we had a lot more volatility over the last couple of months. In the meantime, Europe continues to struggle overall and of course there is a significant concern when it comes to the Covid virus reaction. All things being equal I think that the US Treasury markets continue to see a lot of inflow, and that of course is Pro dollar as well.

EUR/USD Video 27.04.20

Looking at the chart, I think we could get a little bit of a bounce, but that bounce will more than likely be sold into, especially near the 1.09 level, and most certainly at the 1.10 level after that. At this point in time, I believe that there is a significant amount of negativity out there that should continue to throw money into the US dollar, it of course there is a lot of debt out there that is desperately needed to be resolved in the greenback, so that will continue to put pressure upon the Federal Reserve to do something, so there will be noisy headlines coming out but it’s still a downtrend.