EUR/USD Weekly Price Forecast – Euro Slams Into Resistance for the Week

The Euro has broken higher during the course of the week, slamming into the 1.19 level yet again. This is an area that we have seen offer resistance a couple of times in the past, so it should not be a huge surprise that it would do so again. With that being the case, I like the idea of buying dips, because I do think that it is only a matter of time before we see buyers come back in. After all, Jerome Powell suggested during the week that the bar to raising interest rates in the United States is even higher than it once was, and therefore it has turbocharged US dollar selling.

EUR/USD Video 31.08.20

The thing about the Euro to keep in mind is that it is the “anti-dollar.” What I mean by that is that if the US dollar falls in general, almost by some type of automatic the Euro will have to rise. I think given enough time we will test the 1.20 level, but there is obviously a lot of noise just above. With that in mind I like the idea of looking for value on short-term dips, with an eye on the 1.20 level. If we can break above there, then this market is likely to go much higher over the longer term, offering a longer-term rally that could last years. Until the Federal Reserve changes its tune, you have to be a buyer of the Euro against the dollar, but you do not need to buy at the most recent highs, you can look for value.

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