EUR/USD Weekly Price Forecast – Euro Continues to Look Vulnerable

Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth during the course of the week as we continue to see a lot of noise at the large, round figures. The 1.10 level above is a bit of a barrier that people will pay close attention to, just as the 1.09 level underneath should be significantly supportive. In general, I think we look at this through the prism of a market that has sold off quite drastically over the last couple of weeks.

And ultimately, if we break down below the 1.09 level, then the market is likely to go down to the 1.08 level, which is more or less the bottom of the overall consolidation region that we’ve been in over the last couple of years, keeping in the back of our minds that this market is going to continue to see a lot of questions asked about the Federal Reserve, and of course, the European Central Bank, both look like they are probably going to be fairly loose with their monetary policy, but at this point, we also have to ask the question as to whether or not we are going to see some type of economic slowdown.

If that ends up being the case, then it’s very likely that we have a situation where traders might favor the US dollar as a form of safety. With all of that being said, this is a market that I still think is trading in this same range. In fact, I am not sure too much about this market will have changed over the last few weeks, as we are simply trying to find out “center.”

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