EUR/USD Forecast – Euro Continues to Chop

Christopher Lewis
Updated: Jun 2, 2024, 10:09 GMT+00:00

The euro is a very sideways market at the moment, and Friday’s action doesn’t seem to change that overall attitude, although it must be said that we bounced nicely from the 1.08 region.

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Euro vs US Dollar Technical Analysis

The Euro rallied a bit during the course of the trading session on Friday, as we bounced from the 1.08 level. The 1.08 level is an area that previously has been both support and resistance. And therefore, I think it makes quite a bit of sense that we could see a little bit of a push higher, but ultimately the market has been bouncing around between the 1.08 and the 1.09 level for a while now. And at this point in time, I think you have to assume more of the same happens. The interest rates in America did spike a little bit during the day on Thursday, but we are starting to see that abate a bit and therefore the euro has a little bit of breathing room.

If we were to break back down below the 1.08 level, then it could open up a move down to the 1.0750 level. That’s an area that I think is a minor support, but it could be a target. If we can break above the 1.0850 level, then it has the market continue to go to the 1.09 level. In general, this is a market that I think continues to be very noisy, and as you can see on the four hour chart, it literally goes from one major large handle to another, and it has been very predictive in that manner, at least. With this, I think you need to be cautious, but perhaps stick to short-term trading only in this market.

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About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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