EUR/USD Weekly Price Forecast – Euro Trying to Find Bottom at Gap

The Euro has reached down to fill the gap, and now has turned things back around to form a bit of a supportive looking candle. Nonetheless, I am not willing to buy the Euro right now because quite frankly the European economy is far too weak to get excited about owning the currency. However, I recognize that there probably is a bounce coming but that bounce is probably more or less a relief rally than anything else.

EUR/USD Video 24.02.20

If the market was to break down below the bottom of the weekly candlestick, then it’s likely that the market is going to go looking towards the 1.07 level, and then eventually the 1.05 level after that. Ultimately, I am looking for an opportunity to start shorting closer to the 1.09 handle, and then eventually the 1.10 level after that. Looking at this market, the last couple of weeks have been rather negative and a bit of a free-for-all. There is almost always a bit of a retrace, and I think it is likely that we will see that in this market. However, that should be thought of more or less as an opportunity to pick up the US dollar “on the cheap.” However, if the market did break down below the bottom of the weekly candlestick that would show even more concerned, so I anticipate that the market is likely to see the Euro fall against almost everything. It’s not until the market breaks above 1.10 that I would be comfortable going long.