**EUR/USD Technical Forecast: Weekly Trade Levels and Market Analysis**
*Based on the article by Michael Boutros, originally published on Forex Factory.*
The EUR/USD currency pair saw significant movement last week, breaking below critical support before rallying to erase most of the losses into the weekend. This price action occurred within the broader context of a larger yearly support range for the Euro. As technical levels come into sharper focus, the question remains whether the pair will continue higher, or if this recovery will be short-lived before the downtrend resumes.
This technical review updates the weekly trade levels for the Euro and offers a closer look at support and resistance zones based on long-term and short-term technical indicators.
## Overview of Price Action
– The EUR/USD declined sharply at the beginning of the week, breaking significant support near 1.0723–1.0760.
– However, the breakdown was short-lived. The pair found a bottom near 1.0665 and reversed higher.
– By the end of the week, a large rebound reclaimed most of the weekly losses.
– The weekly candle closed well above key short-term thresholds, adding complexity to the next moves.
The broader technical pattern suggests the Euro is moving within a large consolidation phase rather than advancing in a clear trend on the weekly chart. The rebound into the weekend complicates the bearish outlook that emerged earlier.
## Technical Outlook for EUR/USD
From a purely technical standpoint, the EUR/USD is trading within the range of long-term Fibonacci retracement zones. These levels are derived from the multi-year decline and the subsequent rally from the September 2022 low.
### Key Technical Levels
The following are the main support and resistance levels to watch on a weekly time frame:
**Immediate Resistance Zones:**
– 1.0830: Near-term Fibonacci resistance (23.6% retracement of 2022 high to 2022 low)
– 1.0910/30: A key zone where price action found resistance in late 2023
– 1.1015: 61.8% Fibonacci retracement level of the 2022 range
**Critical Support Levels:**
– 1.0723–1.0760: Former support turned potential resistance, important for near-term direction
– 1.0665: Recent weekly low, also long-term structural support
– 1.0610/30: June 2023 low and 38.2% retracement of the 2022 low to 2023 high
– 1.0520/40: Lower support zone that has been tested multiple times in the past year
These zones are derived from Fibonacci retracement and extension levels, historical price reaction points, and intersecting trend lines. The pair is effectively trapped between these bounds, and continuous stringing of lower highs may form a descending consolidation below major resistance.
## Momentum Indicators and Trend Structure
– The weekly Relative Strength Index (RSI) remains neutral and does not show any significant trend conviction.
– EUR/USD is showing consolidation with a bearish tilt on higher time frames.
– Recent price behavior is consistent with a corrective pullback from the July 2023 high near 1.1275.
– As long as prices remain below 1.0910/30 resistance on a weekly closing basis, the bears maintain a technical advantage.
There is no established bullish trend on the weekly chart. Instead, we are seeing repeated tests of support zones, followed by muted bounces, which may indicate underlying weakness.
## EUR/USD: A View from the Daily Chart
Zooming into the daily time frame reveals the following technical developments:
– The recovery from 1.0665 took the pair back above the 1.0723–1.0760 zone.
– This zone was a floor earlier in May and June 2024, now acting as a pivot.
– Daily RSI has crossed back above 50, suggesting short-term bullish momentum may continue
Read more on EUR/USD trading.