EUR/USD Weekly Price Forecast – Euro initially falls but finds buyers towards the end of the week

The Euro initially fell during the week but found enough support near the 1.12 level to turn around and bounce significantly. On Friday, we reached towards the 1.14 handle, giving us an opportunity to form a bit of a hammer. This goes in direct competition with the shooting star or what some would call “inverted hammer” for the weekly candle last week. I think that the 1.15 level above continues to be massive resistance, so if we can break above there I think that’s a very bullish sign. I would point out that the 61.8% Fibonacci retracement level is just below where we bounced from. That might be something worth paying attention to.

EUR/USD Video 19.11.18

Considering that we have a conflicting shooting star and hammer, I suspect that we are probably going to get a bit of consolidation in this area. That would make sense, because we are simply on the sidelines waiting to see what’s going to go on with the Italian debt situation, and that of course the Federal Reserve and its interest rate hike cycle. I also believe that there is a lot of concern about global growth, and as we have broken to a fresh, new low, a bounce from here would make sense as the sellers may try to take advantage of the 1.15 level as potential nasty resistance. If we break down from here, I think the 1.11 level is the next major support level.