EUR/USD Weekly Price Forecast – Euro Continues to Grind Sideways

The Euro fell during the week, reaching all the way down towards the 1.0750 level. The market did bounce on Thursday, and Friday it was struggling for direction. At this point, the market is likely to see more continuation of the consolidation, as there is nowhere to be right now. This makes sense, because the ECB and the Federal Reserve has traded back and forth the idea of blowing up their own currencies. Right now, there is a flood of headlines that continue to throw the market around, and the Euro/US dollar pair is a perfect example of what has been going on around the world.

EUR/USD Video 11.05.20

At this point, I do prefer shorting this market because it is in a longer term downtrend. The 50 week moving average is sitting just above the 1.10 level, and of course that is an area that has caused a lot of resistance in the past. However, a “buy-and-hold” or a potential “sell and hold” type of scenario probably does not show up anytime soon for the weekly charts. This weekly chart does tell you though that sideways trading on something like the daily chart might work out quite well, which still gives you plenty of time to get in and out of the market. If we break down below the 1.07 level, it is highly likely that the market could go down to the 1.05 level given enough time. Below there, the bottom falls out and we go much further, perhaps as low as the 0.80 level based upon historic charts.