Euro Forecast: Outlook for EUR/USD Increasingly Bearish

After the price action in Japan, Euro forecasters appear to be bearish on the currency. So far the reaction from currency traders in London has been more bullish than bearish.

EUR/USD Forecast, Earlier, Euro was considered as the safest and most preferred currency to trade in the Asian region. However, as the Yen has become more attractive due to a weakened Yen and more risky EMU issues, the Euro is starting to show weakness.

Strongest’s Approach The strength of the market opens up new buying opportunities and gives us the chance to buy at the lows and hold for the highs. We might consider this to be a ‘strong’ approach to trading the EUR/USD. In fact, we might think of it as a ‘bearish’ approach.

Strong Weak Change At least for now, traders who are smart enough to wait will hold their strong positions. Those that are not smart enough to wait will go short and make big profits.

Weekly Forecast – Latest Financial Market Reports: Strong Weak Change The Market Now Finds Doubts in the European Economy Most recently the trend is trending up slightly; but, it still falls short of the expectation from most Market participants, as they believe that the global economy is still vulnerable. At least, this has not changed much as it was prior to the House Leaders announcement and the positive surprise in the FOMC minutes.

Weak Shoulder For Euro As the USD/JPY is soaring over the past few weeks, so are weak Euro investors. Consequently, the EUR/USD has fallen below the 50 level and the approaching bear market seems to be getting closer.

Euro Is Rising As theEUR/USD is recovering from the weeks’ low. It is currently showing weak support at the 38.5 level and is now slowly moving higher.

Looking Ahead to Further Signs of Weakness: As far as future short-term economic data goes, we will look to see if the ‘strength in Europe’ headlines can sustain. We think that the financial situation in Europe could continue to show signs of weakness over the coming weeks and if the reality does not change, we will be looking to ride the short-term momentum and head towards the reversal area.

As far as the long-term outlook for the EUR/USD goes, Euro forecasts look to be bearish. We think that in order to reach the reversal levels, the EUR/USD needs to weaken substantially over the coming weeks.

Euro Forecast – Outlook for EUR/USD Increasingly Bearish At present, we are seeing two critical junctures when EUR/USD seems to be increasing in weakness and as a result, the market seems to be beginning to think about further losses. As a result, we think that the EUR/USD has only a handful of strong resistance levels in order to hit the reversal area.

Euro Forecast – Outlook for EUR/USD Increasingly Bearish On the other hand, the bearish Euro forecasts look to be increasing. This is probably because the weakness in the Euro is now beginning to show strong resistance as indicated by the weekly charts.

Euro Forecast – Outlook for EUR/USD Increasingly Bearish We still see a short-term reversal here but the EUR/USD should be considered the next bear. After all, the majority of the market analysts think that the Euro will now follow the USD and USDJPY as the next major currency to fall, so it would seem as if the EUR/USD is entering a correction, but as we explained before, with a new momentum taking place and a new trend forming, the EUR/USD should gain momentum and not follow the long-term trend.