EUR/USD Forecast – Euro Attempts to Recover

EUR/USD Forecast Video for 08-02-2024

Euro vs US Dollar Technical Analysis

The Euro has risen slightly against the U S dollar during the early hours on Wednesday, but at this point in time still looks very much like a market that is bouncing around and trying to sort out where it’s going to be when it is all said and done. At this point, the 200 day EMA above does offer a bit of resistance and after that we would have the 50 day EMA. Underneath, we have the 1.07 level offering significant support, but a move above the 200 day EMA could bring in more FOMO trading, just like a move below the 1.07 level could bring in more FOMO selling.

Ultimately, this is a market that is focusing on the interest rate differential between the two central banks as per usual, with the idea being that the Federal Reserve is likely to cut rates in 2024, but now people are starting to question whether or not the ECB will have to do the same. After all, Germany is in a recession and that has a lot to do with what is going to happen in this currency pair. With the German situation being somewhat dire, it does make sense that the euro would fall, with a possibility of perhaps seeing lower rates this year.

So with that being said, I think we’re trying to carve out some type of range, but at this point in time, we have to sort out whether or not we have hit the bottom. I think the next couple of days could be somewhat choppy. And at this point in time, we’ll have to determine whether or not 1,07 truly is the bottom. If it’s not, then we may have to go look into 1.05 as a potential target. If that happens, you are likely to see a lot of US dollar strength across the board in the Forex market.

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