EUR/USD Weekly Price Forecast – Euro Runs Into Brick Wall

The Euro shot straight up in the air during the week, but by the time the Non-Farm Payroll announcement came out on Friday, things had changed drastically to form a neutral candlestick. The candlestick is of course a shooting star, and that is a very negative sign. If we can break down below the 1.17 handle, the market will more than likely go looking towards 1.15 level underneath. That is an area that is significant in its importance, and therefore it is worth paying attention to as it was a major breakout. I think at this point the buyers would get involved in pick up value in the Euro. After all, the Federal Reserve continues to loosen monetary policy and the US dollar is certainly taking it on the chin.

EUR/USD Video 10.08.20

However, one thing that you need to keep in mind is that there is a lot of debt out there denominated in US dollars so that will make this a difficult fight. Nonetheless, we have gotten to parabolic at this point, so I think it is only a matter of time before we get a pullback which quite frankly is necessary. If we were to break above the top of the candlestick, that would be more of a “blow off top”, which is a very dangerous thing indeed. Trend changes are messy affairs, so the fact that we have behave like this probably is not much of a surprise for anybody who has been trading for a while. However, we had gotten too far ahead of ourselves so let us look for value at lower levels. I am very interested at the 1.15 handle.

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