EUR/USD Weekly Price Forecast – Euro looking for a bottom

The Euro has been very soft due to the Italian debt situation, and of course a lot of fears around the world in higher interest rates in the United States. However, this is a very significant support level in this area, and I think that the market will probably continue to find plenty of buyers underneath. If we break down below the hammer that I have circled on the chart, then I think the market probably goes down rather significantly. That would take a serious ramping up of the fear, so I’m not overly concerned about that right now. Ultimately, this is a market that I think is trying to find a bit of a base, and perhaps return to the consolidation between the 1.1450 level and the bottom and the 1.18 level above.

The market will of course continue to be very choppy and nervous, but longer-term traders may be looking at this as an excellent buying opportunity as the 50% Fibonacci retracement has offered support. At this point, I think it comes down to whether or not you feel that the European experiment will continue, because quite frankly the currency is an extremely low levels. However, if we did break down below that hammer, then I think the 61.8% Fibonacci retracement level could be supportive as well. Overall, I think that market participants are going to be cautious, but the grind continues.

EUR/USD Video 22.10.18