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EUR/USD Weekly Price Forecast – Euro shows resiliency at major support level

By:
Christopher Lewis
Updated: Jun 23, 2018, 05:27 UTC

The Euro rallied significantly after initially reaching towards the 1.15 level during the week and find plenty of buying opportunities. The 1.15 level has been very important in the past, as it was resistance for a couple of years. The fact that we found support here is somewhat bullish, as it was necessary to keep the market afloat after the initial surge.

EUR/USD weekly chart, June 25, 2018

The Euro initially fell during the week, but found plenty of support near the 1.15 level, an area where you would expect to see it. I believe that the market continues to find plenty of interest near that area, and if we can break above the 1.18 level, I think that the longer-term uptrend will continue. A lot of this comes down to the European Central Bank looking to be a year away from raising interest rates, and of course the Federal Reserve looking very likely to do a couple of times this year.

However, there is a certain amount of negativity on the side of the US dollar due to the trading tensions between the United States and China. I think that the market is going to bounce around in this general vicinity, and I would anticipate a lot of back and forth trading in the short term between the 1.15 level in the 1.18 level. If we do break above the 1.18 level, I believe that the 1.2 level would be targeted next, and then eventually the 1.25 level. A break down below the 1.15 level would be extraordinarily negative, perhaps sending the market much lower, perhaps down to the 1.13 level rather quickly. The fact that we ended up forming a hammer like candle though is an encouraging sign for the buyers.

EURUSD analysis Video 25.06.18

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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