EUR/USD Weekly Price Forecast – Euro Shows Signs of Exhaustion Yet Again

The Euro initially tried to take off to the upside during the week but as you can see, we have run into resistance yet again. Ultimately, we are forming a shooting star for the second week in a row, and that of course is an extremely negative sign. At this point, the market looks as if it is going to go looking towards the 50 week EMA underneath which is right around where the 200 day EMA is as well, so it is a bit of a convergence cents worth paying attention to. That means we could go down to the 1.1050 level, an area that has been important more than once.

EUR/USD Video 22.06.20

Even if we rally from here, I am looking to fade this market as we have seen so much resistance above. Ultimately, this is a market that I think will continue to chop back and forth as we have seen for some time, and therefore we need to go back to the relatively “neutral point” of the overall consolidation that we have seen. We are still technically in a downtrend, but we are really starting to press the issue, as we continue to make lower highs in a very sloppy way.

Unfortunately, if you are a longer-term traders difficult to ride through these major issues, the most of which of course is being volatility. I think that this volatility will continue to be a major issue, so keep your position size reasonable. As far as buying is concerned, I do not really have a scenario in which a willing to do so right now, at least not until we break above the 1.15 handle.

For a look at all of today’s economic events, check out our economic calendar.