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EUR/USD Weekly Price Forecast – Euro Continues to Drift Lower

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The Euro has gone back and forth during the course of the week as we are hanging around the 1.1750 level, an area that is previous support as shown by the hammer the last time we had formed here. Ultimately, the market is likely to see a certain amount of buying pressure, but it is also likely that we are going to see the 1.16 level as massive support. The 200 week EMA is sitting right there as well, so I think it all comes together.

EUR/USD Video 26.07.21

On the other hand, if we break above the 50 week EMA, then the market is likely to go looking towards 1.20 handle above. The 1.20 handle is of course a very significant large, round, psychologically significant figure, and of course an area that will attract a lot of attention from the headline perspective. Breaking above the 1.20 handle could open up a move towards 1.22 level, which is where we had seen previous resistance.

Looking at this chart, I think the one thing you can probably conclude is that we are trying to carve out a larger range for the summer, but if we were to break down below the 1.16 level, that could open up massive selling, and would probably be tantamount to some type of major “risk off move” for the longer term. In general, I believe this is a market that is probably going to try to reach towards support underneath, but at the end of the day it is very likely that we will continue more choppy behavior than anything else, which is typical of the Euro.

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This article was originally posted on FX Empire

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