EUR/USD Weekly Price Forecast – Euro falls during week testing support

The EUR/USD pair fell significantly during the week as the ECB suggested that interest rate hikes are coming until summer of 2019, and that means that the Euro may have been overvalued to begin with. The 1.15 level has been massive in its importance, as we formed a huge camera there from a couple of weeks ago, and it was massive resistance previously. The 50% Fibonacci retracement level has offered support as well, so I think it’s very interesting to see that we did bounce there. However, we wipe down a lot of that support over the last week, so I think that it’s only a matter of time before we get some type of answer.

If we continue to see a lot of headlines crossing the wire’s as far as trade wars are concerned, it’s likely that we will continue to see a lot of choppiness in this general vicinity. A break down below the 1.15 level would be very negative, as it would not only wipe out a large come around, psychologically significant number, but it would also wipeout the bottom of a hammer. Overall, this is a market that is testing a very serious level, and it will be very interesting to see whether that level holds. This last week was of course very negative, so it best I think we’re looking at consolidation, at worst we are looking at a break down just waiting to happen. If we do turnaround from here, we need to take out this week’s candle before buying.