EUR/USD Forecast – Euro Continues to Do Very Little

Euro vs US Dollar Technical Analysis

You can see that the Euro has done very little during the early hours on Friday, as it looks like we are content to simply hang around the 1.08 level and perhaps more specifically between the 50 day EMA and the 200 day EMA indicators. This is a market that recently has seen some success to the upside. However, I wouldn’t get excited at this point, as the market continues to see a lot of noise more than anything else.

But quite frankly, I think you have to be a little bit concerned in the sense that the European Central Bank is much more likely to cut rates sooner than the Federal Reserve will. And therefore, you also have to look at it through the prism of a market that is probably still fading the rally on signs of exhaustion.

Underneath we have the 1.07 level more likely than not to offer a bit of support. And above we have not only the 200 day EMA, but we have the spike from Friday’s candlestick of last week offering resistance. And then finally the 1.0875 region. I think this continues to be a very choppy and lackluster currency pair to trade, which is pretty typical for the euro, truth be told. With that, I think you are looking for more or less a range this year with perhaps more of a downward slant overall between now and whenever it is the Federal Reserve signals that it’s thinking about cutting. In the meantime, short-term trading is probably about as good as this gets.

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