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

The Euro initially rallied during the course of the week but gave back the early gains to turn around and show a less than enthusiastic candlestick. That being said though, the market has seen a parabolic move to the upside so it should not be a huge surprise that we have given back a bit. At this point, I think that a lot of traders will be looking for an opportunity to pick up value on a drop in value. Perhaps we would find a lot of interest near the 1.20 handle which of course is a huge round figure.

EUR/USD Video 03.05.21

Underneath there, the 1.18 level is an area of interest as well, but quite frankly I do not think we get there. While we have seen a massive turnaround during the week, the reality is that the monthly candlestick is going to end up being very bullish, and therefore I think it is the most important thing to pay attention to, the market has continued to go higher over the longer term. Yes, there has been a significant pullback from the 1.23 handle but that should not be a huge surprise after the massive surge higher.

The US dollar continues to suffer at the hands of stimulus and the “reflation trade”, so I think eventually we do get a turnaround and that this market goes much higher. With all this being said, a little bit of patience and perhaps drilling down on a daily or even four hour chart might give you an idea as when to enter, but the trend on the weekly chart is still higher.

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