EUR/USD Weekly Price Forecast – Euro shows resiliency at major support level
The Euro initially fell during the week, but found plenty of support near the 1.15 level, an area where you would expect to see it. I believe that the market continues to find plenty of interest near that area, and if we can break above the 1.18 level, I think that the longer-term uptrend will continue. A lot of this comes down to the European Central Bank looking to be a year away from raising interest rates, and of course the Federal Reserve looking very likely to do a couple of times this year.
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However, there is a certain amount of negativity on the side of the US dollar due to the trading tensions between the United States and China. I think that the market is going to bounce around in this general vicinity, and I would anticipate a lot of back and forth trading in the short term between the 1.15 level in the 1.18 level. If we do break above the 1.18 level, I believe that the 1.2 level would be targeted next, and then eventually the 1.25 level. A break down below the 1.15 level would be extraordinarily negative, perhaps sending the market much lower, perhaps down to the 1.13 level rather quickly. The fact that we ended up forming a hammer like candle though is an encouraging sign for the buyers.