EUR/USD Weekly Price Forecast – Euro traders go back and forth during the week

The Euro went back and forth during the week, showing signs of choppiness and sideways trading. The 1.15 level underneath should offer plenty of interest from the buyers, and I think that we will see this market eventually trying to recapture the previous sideways action. The 1.18 level above should be resistance, so I think it will be difficult for this market to break above there. If we did, that would be an extraordinarily bullish sign. I think at this point, market participants or to simply grinding back and forth so therefore you may be better off trading a shorter timeframe at this point.

However, I would point out that the hammer that started the move higher over the last couple of weeks was at the 50% Fibonacci retracement level, so it’s likely that the bottom has been put in. With that being the case, I think that buying the dips continues to work in the Euro, but the upside is also somewhat limited for longer-term investors. If you are looking to pick up this pair, you should probably be looking at the four hour chart, perhaps even the one-hour chart. That being said, if we do get a breakout above the 1.18 level above, I think we go to the 1.20 level rather quickly. The US dollar is extraordinarily strong, perhaps even too strong at the moment. Overall, the market looks likely to continue the range bound trading that we have seen over the last several months.

EUR/USD Video 15.10.18