EUR/USD Forecast – Euro Continues to Drift Aimlessly

Euro vs US Dollar Technical Analysis

You can see that there has been a considerable amount of noisy behavior in the euro’s movements today. And I think at this point in time, you have to look at this through the prism of a market that quite frankly, doesn’t really have a whole lot to do ahead of the Federal Reserve meeting. After all, that could have a major influence on what happens next, and of course traders are going to be somewhat cautious instead of jumping all in.

The 200-day EMA sits just below, and you can see that the 1.08 level is right around the same area also, and therefore I think you’ve got a situation where you could very well see traders get involved in a slight dip. However, I don’t necessarily think that it’s going to be massive support. And in fact, I think you’ve got a situation where we just continue to grind back and forth between 1.07 on the bottom and 1.10 on the top.

With that being the case, we’re right in the middle and there’s a whole lot to do. Lately I’ve been using it as a secondary indicator as to what the US dollar might do. It’s very neutral right now and it should remain so, mainly due to the fact that both central banks are expected to cut rates. Now, having said that, Jerome Powell could say or do something to “upset the apple cart” as it were. But right now, I think we stay in this boundary. However, any move outside of this range would be a huge deal, and a lot of people will be forced to jump into the market at that point in time.

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