EUR/USD Weekly Price Forecast – Euro Sitting on Support

The Euro has broken down a bit during the course of the week, slicing through the 1.20 level at one point. However, it certainly looks as if there is a significant amount of support in this region, so a bounce certainly is possible I still believe that this is a pair that is probably going to do more sideways work than anything else, as we have a multitude of reasons to not like either currency at this moment.

EUR/USD Video 08.02.21

The European Union has several issues out there, not the least of which would be the fact that the vaccine seems to be having trouble getting rolled out, and that of course is something that a lot of traders do not like. With that being the case, you also need to look at the fact that the economic numbers in the European Union have been getting weaker, and that certainly should not help that argument as well.

The argument against the US dollar is that more stimulus is coming, but quite frankly I do not know if that matters. We have seen five stimulus packages in the United States so far, and yet here we are. It seems as if the dream of inflation will have to continue waiting, and therefore growth may be temporary at best. I think you need to keep this in mind when you start to look around the world, because quite frankly things are not bouncing back quite the way everybody has assumed that they would. In fact, when you look back over the course of roughly 700 years, every time there has been a pandemic it has taken a couple of decades to get back to the previous economic activity. While I do not necessarily think that at this point in history it is going to take as long, it certainly is not going to be overnight that we flip the switch everything gets going.

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