Euro Rate Outlook: The EURUSD Forecast is a series of articles that looks at the possible path of the EUR/USD. This Forecast is designed to be a guide for those who are interested in buying or selling EUR currencies.
The Euro Rate Outlook has started a recovery with more support on the downside than the uptrend. The Euro rate continues to be influenced by political and economic uncertainties and this has caused investors to diversify into other European markets. If it was not for these factors, the EURUSD would continue to gain strength, particularly as the US Dollar and Euro gain ground against one another.
The Euro Breakout started at the beginning of March and is showing no signs of slowing down. It is now showing an uptrend line on a chart that includes the EURCHF and EURUSD. The EURCHF is showing support at the level of $1.5120 which is the lowest price that this indicator has crossed during this breakout. EURUSD is also showing support at its highest resistance level at the $1.5590 which is a high price that was reached on January 5th.
The Euro Breakout is expecting to continue to gain strength and has the potential to reach the psychologically important level of $1.65. If this scenario were to occur, it would cause the EURUSD to break out of its range and enter a bearish trend.
Breakouts are characterized by sharp price increases. If you are interested in buying a currency with breakout potential, it is advisable to stay away from the EURCHF and EURUSD. These two currencies are considered to be weak when compared to the US Dollar and Euro. Even if they break out, the potential is very small and can be easily reversed once they stabilize.
A strong uptrend is a sign that the currency will continue to move upwards. The stronger the uptrend is, the greater the likelihood of a reversal. Although it is not advisable to take a position in the stronger trends, it is advisable to wait for the weaker downtrends and breakouts before making a big move.
The EURUSD Forecast aims to be an early warning system for traders who are interested in buying or selling the EUR. If the uptrend continues, it is advisable to buy the EURCHF or EURUSD and hold onto it. This will allow traders to gain in the short term. The upside is likely to last for about two weeks at the most.
It is advisable to monitor the forex news on a regular basis so as to be able to identify opportunities that may lead to short and long term trading profits. The Forecast is designed to provide guidance for buying or selling a currency without requiring technical knowledge.
The euro’s historic upward momentum over the last six months is a positive indicator that the euro will continue to strengthen against the US dollar. Although the uptrend will likely continue for a number of months, there is a good chance that the market will reverse at some point due to the weakening US dollar and EURCHF.
Traders who are hoping to get in at the bottom of a EURCHF should purchase the EURCHF when the euro is within range of the psychological support level of $1. The chart pattern is called a triangle pattern. It is similar to a bar chart and has the same indicators as a bar chart. In the example below, the red and blue lines are moving together and the triangle is formed.
If the uptrend is strong enough, the breakout will occur when the EURCHF breaks out and then the uptrend will continue for a few days until the EURUSD breaks out and retrains itself on a new higher area. A reversal will occur once the EURUSD reverses and falls back to the lower support level.
The trend is likely to continue into the spring and the euro could end up falling towards the support zone. A reversal is highly unlikely but it is possible. If the euro reaches this level, it will be a good time to sell the EURCHF and look for a second trend reversal in the future.