EUR/USD Weekly Price Forecast – Euro Continues to Bounce Around

Euro vs US Dollar Weekly Technical Analysis

The Euro has rallied a bit during the course of the trading week to reach the 1.11 level, but it has been somewhat lackluster and it’s probably worth noting that it’s been a very noisy move. Keep in mind that the Federal Reserve is expected to cut rates soon, but there is a massive barrier just above the 1.12 level that I think is going to take serious effort to get beyond. And in the meantime, it could very well mean that the Euro ends up going sideways. If the market were to break down below the 1.10 level, then it’s likely that the 200-week EMA will get tested followed by the 1.09 level.

If we break to the upside, I do think it’s going to take several attempts to get through the area right around the 1.1240 level, which is where we had seen a massive sell-off back in the beginning part of 2022. There are interest rates coming from both central banks. The question now, of course, is how many will we get out of the Federal Reserve?

I think at this point in time, a lot will be determined by the press conference after the interest rate decision in September from the Federal Reserve and of course, Jerome Powell. All things being equal, this is a market that is at the top of the range that we have been in for a couple of years now. So, one would have to think that it will continue to be difficult to make massive gains, at least until we get a fundamental shift.

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