EUR/USD Weekly Price Forecast – Euro Slams Into Gap

The Euro has broken down significantly during the week, in what has been extraordinarily bearish and volatile trading. We have been in a downtrend for quite some time but did bounce a little bit on Friday due to filling the gap on the weekly chart. I believe that we will probably see a short-term rally in this pair, simply because it is so oversold, but it should be a nice selling opportunity. The most obvious area to start selling from would be the 1.10 level, which of course has a significant psychological aspect built into it.

EUR/USD Video 23.03.20

I believe at this point we are simply looking for an opportunity to start selling again, as the market has gotten way to volatile. In any short covering rally will offer a nice opportunity for those to take advantage of again, but a bit of patience will probably be needed. Ultimately, if the market breaks down below the bottom of the weekly candlestick, then it’s probably going to send the Euro down to the 1.05 level next. All things being equal, I do not have any interest in buying the Euro, because the US dollar is so heavily favored by currency traders around the world. This was the case before the coronavirus outbreak, and it continues to be as the European Union is essentially shut down at the moment. I believe that we will test the 1.05 level eventually, as it is a large, round, psychologically significant figure and of course is the major bottom in this pair several times going back in history.