EUR/USD Weekly Price Forecast – Euro Gives Up Gains
The Euro has initially tried to rally during the course of the trading week but gave back gains as you can see on the chart. It looks as if the 1.16 level continues to be a bit of a magnet for price, so with that being the case it is likely that we will struggle to get away from here with any type of ease. Keep in mind that the euro suffers at the hands of the European Union and the lackluster performance.
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All things been equal, this is a market that I think continues to see a lot of noise, but it should be noted that we are sitting at basically the 200 week EMA. There is a major support level between the 1.16 level and the 1.15 handle, so it is not until we break down below the 1.15 level that I would get aggressively short.
EUR/USD Video 01.11.21
If we were to break down below the 1.16 handle, then it is possible that we could go much lower. The market will continue to see a lot of choppy behavior, but I think what we have here is a scenario where we will see some type of fight on our hands, and I think that will continue to be what we see here going forward. From a longer-term standpoint, I do believe that we are going to have to ask a lot of questions around the 1.15 handle. All things being equal, this is a market that I think it is worth paying attention to for no other reason than it could be thought of as a great indicator as to where the US dollar may go next.
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