EUR/USD Weekly Price Forecast – Euro Testing Top of Range

The Euro initially fell during the course of the week but then turned around to show signs of life again as we are reaching towards the top of the overall consolidation. The 1.1375 level has been resistive, and now that the 50 day EMA is dipping below the 1.14 handle, we are setting up for some type of battle will appear. If we can clear the 1.14 handle, that would be a clear sign that the Euro is strengthening and ready to take off.

EUR/USD Video 03.01.22

To the downside, the 1.1225 level is significant support, and essentially the “floor in the market” right now. As things stand though, it certainly looks as if the Euro is making an argument to rally from here, and if it does then I think the 1.15 or maybe even the 1.16 level above there as it was the scene of the most recent selloff. That being said, a lot of this will probably have a lot to do with the US dollar and what is going on going forward, as there seems to be a certain amount of mistrust as to whether or not the Federal Reserve is actually going to be able to tighten monetary policy for very long.

To the downside, if we do wipe out the 1.12 level, then it is likely that the Euro will continue to fall even further. It would be very interesting to see how this plays out over the next couple weeks, but right now it certainly looks as if we are trying to take off to the upside, at least if for no other reason than to recover a bit.

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