EUR/USD Forecast – Euro Continues to Consolidate Against The Dollar

Euro vs US Dollar Technical Analysis

The Euro, as you can see, has rallied slightly during the trading session here on Tuesday, but quite frankly, I don’t see it as a market that is worth putting a lot of money into. After all, we have a situation where we are essentially in the middle of larger consolidation between 1.10 on the top and 1.07 on the bottom. Both central banks are expected to cut interest rates this year and therefore, they don’t really have a leg up on the other.

If that’s going to be the case, then really at this point, I anticipate more back and forth than anything else. As we are directly in the middle of the overall consolidation, it does make a lot of sense that we see the market as one that you can play on extremes. We’re not on the edge of the consolidation area. So with that being the case, I don’t necessarily want to get aggressive at this point.

What I will do is use the pair as a gauge on US dollar strength. I use it all the time for that, actually. So, for example, if the Euro is rising, then you might expect the US dollar to drop a little bit during the day. That being said, if we do get closer to the 1.10 level and see a bit of hesitation, I won’t hesitate to short this market. If we get down to the 1.07 level and see a little bit of a bounce, then I would be a buyer. Once we break out of this range, the suggested measure move is for 300 pips, but we’ll have to see if that even happens.

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