EUR/USD Weekly Price Forecast – The Euro Continues to Suffer

The Euro has gapped lower to kick off the week, but then turned around to reach higher and fill that gap. At this point, the market then broke down below the 1.1830 level, an area that should continue to be important, as it had been the bottom of a hammer from a couple of weeks ago, and where we had seen an impulsive move to the upside previously. At this point, the market is now testing the 50 week EMA, which at this point continues offer the idea of support.

EUR/USD Video 29.03.21

If we break down below the bottom of the candlestick, it is likely that we will continue to go down to the 1.16 level, which is an area where we would have a lot of board at based upon previous action. Breaking down below that level could really put the accelerator down as far as selling is concerned. On the other hand, if the market was to turn around and recapture the top of the candlestick, then it could send the Euro higher.

All things been equal, this is a market that is going to be focusing on yields in the United States, and of course whether or not the European Union is going to get beyond the lockdowns anytime soon. It certainly looks as if the market is trying to do everything, they can reach towards 1.16 level so that is my base case scenario in this market. Nonetheless, it will probably continue to be noisy to say the least so keep that in mind. As long as those yields in America continue to gain, that is probably going to continue to make the US dollar much more attractive.

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