EUR/USD Weekly Price Forecast – Euro struggles during the week
The EUR/USD pair tried to rally during the week but gave back some of the gains to form a bit of a shooting star. This is a market that will continue to be very noisy, and quite frankly I think this comes down to the Brexit more than anything else. There’s a lot of concern out there as to how things will play out, and that of course has people questioning the viability of the rally. I think at this point, we may see a bit of a pullback near the 1.15 handle underneath, an area that is rather supportive. I think that if we can break above the 1.18 level though, the market should continue to go much higher and drive towards the 1.20 level after that.
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The 1.15 level being broken to the downside would be very negative indeed and send this market much lower. However, I think the fact that we broke above that level is a good sign, but it’s also difficult to give us an idea as to what to do yet, because the last couple of weeks have been thin as far as volume is concerned. Overall, I think the next couple of weeks are going to be crucial. Longer-term traders will be making significant decisions, but I think it becomes much easier above the 1.18 level, because it would be a complete turnaround. Otherwise, if we break the hammer below the 1.15 level, we will continue to go much lower.