EUR/USD Forecast – Euro Continues to Consolidate

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth against the US dollar during trading on Thursday as we continue to just bounce around the 1.09 level. With that being the case, I think the market is going to continue to see a lot of choppiness and a lot of noisy behavior, but I do think that there are multiple levels that you need to be paying attention to right now. The first one is going to be the 50-day EMA sitting just below, as it has offered support recently. But we also have larger numbers to pay attention to, such as the 1.10 level above. That, for me, is a significant resistance barrier.

Underneath we have not only the 200 day EMA, but we also have the 1.07 level, which is significant support. This year is very much looking like last year in the sense that I don’t know that you have a clear winner here. The Federal Reserve has reiterated its desire to cut rates later this year, but at the same time, the ECB is going to have to start thinking along the same lines as they have a recession in Germany to worry about.

So with that being said, I think we just remain sideways for the foreseeable future. What I would look at as a swing trader is a move towards the levels mentioned previously and signs of exhaustion that I could fade. If you are a short-term range-bound trader, this might be the market for you if you’re willing to sit in front of the computer all day because there are certainly short-term opportunities in both directions.

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