Euro Forms an Inverted Hammer

Euro vs US Dollar Weekly Technical Analysis

The Euro initially tried to rally during the trading week but gave back quite a bit of gain to form a massive, inverted hammer. Quite frankly, the Euro looks like it is about the drop dead and it is worth noting that the 1.08 level is a major support level. If we break down below that area, then the market could very well go looking to get to the 1.06 handle. There is a lot of noise between these two areas, so it is worth keeping that in the back of your mind. In other words, if we do break down from here it is very likely to be a messy and choppy affair more than anything else.

On the other hand, if we were to turn around a break above the top of the hammer for the weekly candlestick, that would be a very bullish sign. However, I have no interest in trying to buy the Euro in this environment, as I believe we would need to take out the 1.12 level above to take serious note of any type of reversal. I think it is more likely that we simply grind lower over the next couple of trading sessions.

The weekly chart is going to be a little difficult to trade all the way down here, because we do not have a reversal candlestick, but we do not necessarily have an easy way down to the 1.06 handle. In other words, you will probably have to trade shorter time frames and fade rallies that show the first signs of exhaustion, because quite frankly that is the best way to realize profits in a market like this.

EUR/USD Price Forecast Video 25.04.22

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