EUR/USD Weekly Price Forecast – Euro falls during the week but sees support underneath.
In This Article:
The Euro has fallen a bit during the week, reaching towards the middle of the consolidation area that we have been in for some time. I believe that the 1.15 level underneath is massive support, just as it has been massive resistance. Longer-term charts dictate the perhaps we are trying to decide where to go next, as we have a lot of concerns coming out of Europe right now, but I also recognize that the demand level near the 1.15 level is rather strong. At that being the case, it’s likely that we could go towards the 1.20 level above.
If we do break down below the 1.15 handle, then it’s possible that we could drop down to the 1.1250 level after that. I think that the next couple of weeks will feature a lot of consolidation, mainly between the 1.15 level on the bottom, and the 1.1850 level on the top. This is much easier to see on the daily chart, which although a shorter timeframe, certainly looks to be solidified at the moment. A break above the 1.1850 level sends this market looking towards the 1.20 level as mentioned previously, and then possibly even the 1.25 level after that.
If we get good news coming out of the trade war situation, then that should help the Euro as well, but clearly I think longer-term traders are starting to step in and try to support this market, giving it an opportunity to make a longer term run to the upside.
EUR/USD Video 16.07.18
This article was originally posted on FX Empire