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

Euro vs US Dollar Technical Analysis

The Euro initially rallied a bit during the trading session here on Wednesday. As we continue to see a little bit of a recovery from the bottom here of the larger range, the 1.07 level is an area that a lot of people have been paying attention to, but ultimately it does look like this is an area that’s going to continue to hold. We have been trading between 1.07 and 1.10 for some time, and there’s nothing on this chart to suggest that’s going to change. After all, both central banks are likely to cut interest rates later this year, so there’s not a whole lot to think that these two currencies will be differentiating themselves from each other.

The 50 day EMA and the 200 day EMA indicators both are relatively flat. So, I think that continues to show itself as a range bound market. In general, I think you just have more of a drift higher as we head into the jobs number on Friday, which obviously will have a major impact on what happens next. Regardless, I think this is a situation where you are going to spend most of the year trading point range and as we had gotten too close to the bottom, it makes sense that we bounced a bit. That being said, if we were to break down below the 1.07 level it does open up a move down to the 1.05 level and the US dollar strength across the board. We did get a little extended so now it looks like we are just trying to head back towards equilibrium.

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