EUR/USD Forecast – Euro Continues to Go Back And Forth

Euro vs US Dollar Technical Analysis

The Euro has done very little in the way of movement during the trading session on Monday, but that’s not a surprise. We’re essentially in the middle of the overall range and, therefore I think we’re basically where traders settle.

The 1.07 level underneath is massive support while the 1.10 level above is massive resistance. Being in the middle of it just shows a sense of blaze. However, if we were to get to the extremes in one of those levels, then I would either be a buyer or a seller as I suspect the market will stay in this range for most of the year.

This does make a certain amount of sense because both central banks are looking to cut rates between now and December and if that’s going to be the case, one doesn’t necessarily outperform the other in general. However, I would point out that this is a market that can be used as a proxy for the US dollar and how it will perform elsewhere. So, I sometimes use it as an indicator more than anything else, especially when we’re here at fair value.

So, if the Euro suddenly strengthens, then that tells me maybe the dollar will fall against some of the other major currencies as well that might have a better setup, for example. The 50 day EMA and the 200 day EMA indicators are both flat and we’re sitting right there at them. So there is not much to do here other than wait.

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