EUR/USD Weekly Price Forecast – Euro Explodes to Upside

The Euro exploded to the upside during the week as the 1.15 level was sliced through. With that being the case, it is likely that we will continue to go higher over the longer term, and that short-term pullback should offer buying opportunities. I believe that the size of the candlestick shows just how bullish this market is, but it also has gotten a bit ahead of itself. I like the idea of buying a pullback closer to the 1.15 handle, possibly even the 1.14 level. Any type of bounce from that area should be a very strong buying opportunity. At this point, you simply cannot jump in and buy the pair at these high levels.

EUR/USD Video 27.07.20

Ultimately, I think that we have shifted the attitude and the trend of the market, so now it is simply a matter of time to look for some type of value in the Euro to take advantage of. The Federal Reserve is loosening its monetary policy quite rapidly, and is nowhere near fixing the quantitative easing spigot, so at this point in time it is a “buy on the dips” type of market. The 200 week EMA underneath is massive support, so now I believe that the 1.14 level becomes the “floor” of the market. To the upside, the market is likely to go looking towards the 1.20 level above, possibly even higher than that. However, we do need to take a little bit of a pullback in this market to build up the necessary momentum to continue this move. All things being equal, this is an anti-US dollar move.

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