EUR/USD Forecast – Euro Continues to Consolidate

Euro vs US Dollar Technical Analysis

The Euro has done very little in early trading against the US dollar as we continue to see the market stall in general. At this point in time, the market seems to be hanging around between the 1.09 and the 1.10 levels. And that does suggest that perhaps we’re just waiting for some type of momentum. The PPI numbers will come out and probably be a bit of a dud. We’ve already seen CPI come and go, and quite frankly, it didn’t change much. With that being the case, I think you are just simply hovering around in this area, looking for some type of reason to move.

Keep in mind that both the European Central Bank and the Federal Reserve are likely to cut rates later this year, with the Federal Reserve actually admitting that they are going to. ECB right now only suggested, so it is worth paying attention to the fact that this may or may not just as simply become an indicator showing what is going on with the US dollar overall. The pair itself, I think is a bit lackluster. 1.10 might be an area you can start shorting from, but at this point in time, I would need to see some type of exhaustive pressure. If we can break above 1.10, then the market could go looking to the 1.1150 level.

Underneath us we have the 50 day EMA and the 200 day EMA, both ready to offer support. And then eventually the bottom of the bigger area went down at 1.07. At this point, if you’re a short-term range bound trader, this might be a decent pair for you, but you’re not looking at very big moves under present circumstances. Things could change and of course I’ll let you know, but right now I’m just using it as a gauge to what to do with the US dollar overall. With that I remain fairly neutral.

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