EUR/USD forecast for the week of August 7, 2017, Technical Analysis

The EUR/USD pair initially tried to rally during the week but Friday was a very negative. This was due to the stronger than anticipated jobs number coming out of the United States, and by forming a shooting star, looks likely that we will pullback this week. However, I would anticipate that the 1.15 level underneath should be supportive so shorter-term selling should be possible, but longer-term I think that the market should continue to reach to the upside. I think that the 1.15 level will attract a lot of attention, so it’ll be very important for the market to hold that level. If it does not, that could be very negative.

Parabolic

The parabolic move of course is getting exhausted, and if we can break down below the 1.15 level, we could collapse all the way back down to the gap at much lower levels. Ultimately, this is a market that should continue to see bullish pressure in my estimation, but I think that we have gotten ahead of ourselves, so that’s a nice opportunity to take advantage of an uptrend based upon value. If we were to break out to the upside, I think that the 1.20 level will be even more resistive, based upon a gap and of course the large, round, psychologically significant number. I expect that the next couple of weeks will probably be a bit of a relaxing and cooling-off period.

EUR USD Forecast Video 07.8.17