EUR/USD Weekly Price Forecast – Euro shows strength during the week

The Euro rallied significantly during the week, reaching towards the 1.1350 level where I suspect there is going to be a significant amount of resistance. If we can break above there, it’s very likely then that we could go to the 1.1450 level above there. At this point, it’s very likely that we will get a short-term pullback but it appears that the Euro is trying to break out to the upside and change the overall trend. It makes a lot of sense considering that the 61.8% Fibonacci retracement level is in the same area as well. Simply put, this is a market that’s ready to bounce due to the Federal Reserve.

EUR USD Forecast Video 24.06.19

If the Federal Reserve is in fact going to go ahead and cut interest rates a couple of times later this year, the question then becomes whether or not the ECB can do anything to counterbalance this. I highly doubt it, considering that they have negative interest rates going on already. This being the case, I am bullish of this market but I recognize we may need to build up a little bit more inertia before we take off to the upside. If we can break above the 1.15 level, at that point I suspect it’s very likely that the overall trend will be obvious to everyone else, and then we start to see this market go much higher. At that point I would anticipate a move towards the 1.20 level above, but obviously that’s a very long term target.

Please let us know what you think in the comments below