EUR/USD Weekly Price Forecast – Euro Continues to See Overhead Resistance

Euro vs US Dollar Weekly Technical Analysis

The Euro initially did try to rally during the course of the trading week, but then turned around to plunge quite viciously, breaking below the 1.10 level as the US jobs number came out much hotter than anticipated. With that being the case, it looks very much like a market that will continue to stay in its overall range. And it does make a certain amount of sense as the jobs numbers in America, beating expectations, will generally paint the Federal Reserve in a corner where they cannot cut aggressively in the next cut. If that’s the case, the market will be looking for a stronger US dollar going forward.

So, with that being said, I think you’re just looking at a scenario in which, between the CPI numbers coming in cool for Europe and the jobs number coming in hot for America, we’re going to continue this overall consolidation, and we could very well find ourselves grinding down toward the 1.08 level next.

This is a market that given enough time will probably have to make a bigger decision, but right now we just aren’t ready to do so. And with that being the case, you have a scenario where the 1.08 level, I think, will be an area a lot of people will start to reassess. But right now, it certainly looks like we are going to pull back a bit.

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