EUR/USD Weekly Price Forecast – Euro Struggles at 200 Week EMAThe Euro has rallied rather significantly during the week but seems to be running into trouble near the 200 week EMA.
EUR/USD Video 08.06.20
The Euro has rallied significantly during the trading sessions that made up the week, reaching towards the 200 week EMA. After all, there were a bit more positive comments coming out of the ECB during the week, and that only exacerbated what was already a bullish move. Having said that, the jobs number in the United States was much better than anticipated, and perhaps this takes the idea of negative interest rates off the table.
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Furthermore, we have seen the stock market explode to the upside in the United States, which of course is priced in US dollars. With that being the case, it is highly likely that we will see a lot of money flowing into the greenback, due to the fact that it is necessary to take advantage of the potential move. I believe that the fact that the US job market is better than anticipated could help this market pullback.
If we can break above the 1.15 level, then it should continue to go much higher, reaching towards the 1.1750 level, maybe even the 1.20 level. However, that would be an explosive move and I think that it is likely we need to pullback even if we are going to be bullish if for no other reason than to pick up momentum. With that, I like the idea of paying attention to how we close for the week, but I do think that a pullback makes sense regardless of which direction you favor longer term. All things being equal though, this is a market that simply is starting to throw its volatility around.
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