EUR/USD Weekly Price Forecast – Euro Showing Signs of Exhaustion

The Euro initially tried to rally during the week, breaking above the 1.19 level. However, that is an area that has offered far too much in the way of resistance, and now looking at this chart it is likely that we are going to see a bit of back-and-forth here. The 1.17 level underneath could be massive support, but if we were to break down below there it is likely that the 1.15 level will be massive support, as the level was once massive resistance. All things being equal, the market has gotten far ahead of itself so a pullback would make quite a bit of sense.

EUR/USD Video 24.08.20

That being said, we are in the midst of vacation season so a lot of times the timeframe in late August tends to be rather quiet. I think back and forth will more than likely be what we do, but if the market does make a bigger move, we have a couple of hundred pips just waiting to be had in one direction or the other.

Remember, the Federal Reserve is going to flood the markets with greenbacks, but that being said with the Germans producing a less than desirable PMI figure during the trading session on Friday, it shows that people are in fact concerned about the European Union, and you should also pay close attention to the fact that there are spikes in coronavirus infections that could drive the Euro lower. We are most certainly in a major inflection point, but this might be more of a September story than anything else.

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