Last weekend, the Eurozone’s November PMI results were weaker than expected, causing increased selling of the euro. The euro fell below the low of 1.0450, the lowest in about two years, reaching as low as 1.0334. Later, due to the weekend, there was some buying, pushing the euro back up to the 1.04 level by the end of the day. The strong U.S. economy, in contrast to the weaker European economy, including Germany, has led to expectations of further interest rate cuts by the European Central Bank (ECB), which is putting downward pressure on the euro.
Additionally, the U.S. dollar has risen by about 600 points since the beginning of the Trump rally on November 6, causing the euro to fall. By the weekend, the daily candlestick had a long lower shadow, suggesting that buying may have started again.
This week, many in the U.S. will take a long break for Thanksgiving, so there is a high chance of euro buying as part of position adjustments before the holiday.
This Week’s EUR/USD Range Prediction: 1.0560 to 1.0340
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