EUR/USD Weekly Price Forecast – Euro Continues to Plunge (2024)

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Euro vs US Dollar Weekly Technical Analysis

The Euro initially tried to rally during the week, but then it fell hard as we continue to see inflationary numbers come out of the United States. With that being the case, I think we are going to make a run towards the 1.05 level. Furthermore, Christine Lagarde said during a press conference this week that they are likely to start cutting sometime in June. This is something that a lot of traders had been trying to price in, but now it seems to be undeniable to everyone.

And if that’s going to be the case, then the market’s going to have to get ahead of that. Both central banks are likely to cut interest rates this year, although the odds of the size of the cuts coming out of the Federal Reserve seem to be shrinking. So, with that being the case, it makes perfect sense that we continue to see downward pressure.

The question at this point in time, I think that the 1.05 level underneath is a major, support level. If we break down below there, then we go to go lower, perhaps down to the 1.02 level. On the other hand, if we turn around and rally from here, retaking the 1.07 level, then it’s possible that we could go to the 50 week EMA.

Either way, this is a market that certainly looks very negative. And I think with that being said, I think you’ve got a situation where you just have to watch for opportunities to short this market, but I think you probably have to do them off of shorter term charts.

For a look at all of today’s economic events, check out our economic calendar.

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