EUR/USD Weekly Forecast 29/03: Key Support Levels (Chart)

(MENAFN- Daily Forex) Day traders of the EUR/USD can certainly find volatility if they seek it this coming week. The broad Forex market will remain choppy.

Last week’s price action mirrored shifting sentiments which have swirled in the financial markets the past four weeks. The Iranian war has entered its fifth week and near-term worries are threatening to grow into mid-term concerns effecting outlooks. Money can be made by speculators, but it can be lost too.

Thoughts about interest rate cuts to come from the U.S Federal Reserve have been placed in a corner and are not being discussed for the moment. The sustained costs of WTI Crude Oil and other energy resources has sent a shiver into financial institutions as they consider the potential of inflation.

The EUR/USD hit a high of nearly 1.16300 in the middle of this past week, only to give back its gains as selling hit global equity markets. Central banks are now in a position that are uncomfortable Centric Safe Haven Status

The final two days of trading this past week on Wall Street saw renewed strong selling. This sparked a higher yield on U.S 10-Year Treasuries as investors looked for safe havens. The EUR/USD is correlating to the broad Forex market which continues to see agitated sentiment shift cause volatility. Speculators should be braced for more storms in the coming days. The Iranian war doesn’t appear quite ready to suddenly deescalate. Increasing U.S bond yields and turn away from equities will not help the EUR/USD climb.

Having gone into this weekend near the 1.15103 mark is still above last Monday’s lows around the 1.14850 level, but the 1.15000 realm is close enough to likely be causing concerns among large players in the EUR/USD who were wagering on an upturn. The past few Monday’s have provided high drama in Forex and other assets as investors and large speculators deal with their emotions which remain anxious Also Equal Speculative Dangers

Momentum shifts have been rapid and this is likely not going to change this week. Not only will the Iranian war cause dynamic reactions, but day traders need to remember that many financial institutions will close this coming Friday for the holiday.

This opens the door to the possibility of safe haven seekers looking for secure footing going into a long holiday weekend. Three day weekends often see investment houses positioning themselves in a cautious manner. With the likely that the Iranian war will still be raging, this means the EUR/USD could see increased price velocity this coming Thursday. Day traders may believe there are plenty of opportunities to take advantage of volatility in the EUR/USD in the coming days, but if conditions grow too fast this could equate into painful results for retail speculators not using adequate risk management.

EUR/USD Weekly Outlook:

Speculative price range for EUR/USD is 1.13900 to 1.16080

While it may feel practical to be optimistic and believe in a good outcome developing via the Middle East conflict, the reality appears to point towards conflict continuing which is likely going to cause discomfort for investors. Perhaps the hope of some support suddenly developing in global equity indices will prove to be true, but there is also a chance nervousness is not resolved in the coming days. Downside risks for the EUR/USD should not be discounted.

Upside visions of the 1.16000 vicinity may be possible in the near-term, but it also may prove to resistance until there are genuine hopes of ending the Iranian war. Traders need to remain conservative. The EUR/USD should be watched early this week to see if it challenges the 1.15000 mark, a move lower could put the currency pair in a position to test fresh lows. Again, early price action on Monday’s the past few weeks has proven dangerous and smaller traders may want to sit on the sidelines until sentiment shows some type of equilibrium emerging.

EURUSD Chart by TradingView

Ready to trade our weekly forecast? We’ve shortlisted the best European brokers in the industry for you.

MENAFN29032026000131011023ID1110915479