EUR/USD Weekly Price Forecast – Euro Continues to See a Lot of Choppiness and Sideways Action

Euro vs US Dollar Weekly Technical Analysis

The Euro initially plunged for the week to break down below the 1.08 level only to turn around and show signs of strength, especially on Friday as we exploded to the upside as the jobs number came out weaker than anticipated in the United States, having people look to the Federal Reserve to start cutting rates. The question now is where do we close?

Because you can see just above the 1.09 level there has been significant resistance and the 1.0950 level above is an area that we have sold off from a couple of times. I think we continue to see a lot of choppy range-bound behavior, but it looks, at least at this point, you can use this chart as an idea as what to do with the US dollar against other currencies. That’s how I use it.

I honestly trade the euro maybe twice a year. It is a short-term scalper’s type of market most of the time, and that’s fine if that’s your trading style. But as a swing trader, I tend to look at it to give me an idea of where the dollar might go against other currencies during the next couple of weeks.

It’s an excellent indicator for that. It’s basically a proxy for the US dollar index. At this point, if we break above the 1.0950 level, then I think the 1.10 level gets targeted. If we turn around and break down below the 1.08 level, then the 1.07 level gets targeted. As things stand right now, it looks more up than down, but we’ll have to see how the week closes.

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