EUR/USD Weekly Price Forecast – Euro Continues to Look Neutral Overall

Euro vs US Dollar Weekly Technical Analysis

The Euro has rallied quite a bit during the week, but really at this point in time, it also looks a little lackluster as the 1.09 level has been like a brick wall. You can see that we are squeezing a bit, and that’s something that I’ve seen in multiple pairs.

It’s not just the euro, so I think we are about to see a big move one way or the other in the US dollar. At this point, I am fairly ambivalent about this pair, but that’s nothing new. Quite frankly, trading the euro is like watching paint dry, and I was a painting contractor for 15 years, so I know exactly what I’m talking about.

That being said, if we break down below the 1.08 level, then the euro could drop down to the 1.07 level. On the other hand, if we break above the 1.09 level, the market could go looking to the 1.10 level. We’re right in the middle of a larger range, consolidation so we’re about as neutral as it gets right now and this is going to be a scenario where traders are going to have to be very cautious. I think getting too big in one direction or the other is probably going to be a mistake at the moment. And I think we’re going to be rangebound most of the year. I’ve been saying that for a few months, and there’s nothing on this chart that tells me anything different.

So, I am very ambivalent, but you can use this as an idea as to where the U.S. dollar might go against other pairs. That’s generally what I use the euro for anyway.

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