EUR/USD Weekly Price Forecast – The Euro Continues to Grind Higher

The Euro has broken above the 200 week EMA during the last couple of trading sessions, and remains extraordinarily resilient, despite the fact that we continue to form a ton of wicks. That being said, for me the real breakout is going to be above the 1.15 handle, which of course does look more likely at this point. This does not mean that I am jumping in and buy it right away, because if we can break above the 1.15 handle, then it becomes a major trend change in it suddenly is more or less a “buy-and-hold” market.

EUR/USD Video 20.07.20

To the downside, if we break below the 200 week EMA, then we are probably going to go looking towards 1.12 level. The biggest problem with this pair is that the US dollar has a certain amount of demand and it due to the concern of risk around the world, but at the same time the Federal Reserve is flooding the market with cash. With that, it does wear upon the value of the US dollar over time.

It certainly looks as if we are trying to make a move but there is so much in the way of resistance above that being a bit patient and either buying pullbacks or waiting for that breakout will be the best way to trade this market. As far as selling is concerned, it would be difficult to do so in this environment, but it is something changes fundamentally I will be the first person to let you know here at FX Empire.

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