EUR/USD Weekly Price Forecast – Euro Continues to See Upward Pressures

Euro vs US Dollar Weekly Technical Analysis

The Euro rallied pretty significantly during the course of the trading week as we broke above the 1.11 level. And now it looks like we are trying to threaten the 1.1150 level. We are at the top of a massive consolidation range and therefore it does make a certain amount of sense that we get a little bit of a pullback. If Jerome Powell doesn’t sound dovish enough, then it’s likely that the market would probably see a lot of volatility and probably drop pretty significantly.

In general, I think this is a situation where traders will look at short-term pullbacks as perhaps buying opportunities unless Powell shocks the market, and that is very possible. If he’s not dovish enough, you could see a lot of people trying to reverse their bets that they had been involved in. If that were to happen, it is likely that the market will continue to see a lot of selling, especially if Powell isn’t dovish enough for the traders watching.

With this, I think you’ve got a situation where we probably have more likelihood of downward pressure than up, but I also recognize that it’s probably going to be very noisy to say the least, and it’s probably not going to be a market where you are throwing a lot of money at it. I think the choppiness continues in this pair, and as a result, this is a market that I believe will continue to be harder for longer-term traders.

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