EUR/USD Weekly Price Forecast – Euro Rallies Significantly During The Week

Euro vs US Dollar Weekly Technical Analysis

The Euro has rallied rather significantly during the course of the trading week to test the 50-week EMA, and this was exacerbated by the jobs number coming in lighter than anticipated in America. While a very bullish sign, really when you look at the weekly chart, this just looks like we are heading right back into the previous consolidation. That is my base case scenario, but I also recognize that there are a lot of different things going on at the same time.

After all, the European Central Bank of course has a situation where it’s going to have to cut rates and now that the jobs numbers are slowing down a little bit perhaps people are starting to think that the Fed might do the same. So, in other words we’re back to the neutral stance. We continue to bounce around between 1.07 and 1.10. At this point I think we’re heading towards the middle. I don’t read much into this other than it’s going to be more of the same.

With that being said, it’s more or less a short-term range-bound market. Longer-term traders are going to struggle to find any real trade here that’s going to end up making them a lot of money, and therefore I think longer term traders will use this more or less as a sign of US dollar strength or weakness. Quite frankly, the markets are far too skittish to place long term trades in slow currencies like these.

For a look at all of today’s economic events, check out our economic calendar.