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EUR/USD Forecast – Euro Continues to Go Sideways

By:
Christopher Lewis
Updated: Mar 6, 2024, 15:05 GMT+00:00

The euro has continued to see a lot of sideways action overall, as the market have seemingly had no real push as of late.

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Euro vs US Dollar Technical Analysis

You can see the euro has been hanging around the 1.09 level, an area that has been important multiple times. However, whether or not we can break above there remains to be seen. If we can, it does open up the possibility of a move to the 1.10 level. That’s the top of a larger consolidation area. And underneath, I think the 1.07 level is an area that offers significant support. The 50-day EMA underneath is support, just along with the 200-day EMA is. All things being equal, I think this is a market that will continue to see a lot of noisy behavior, and it does make quite a bit of sense that it would be the case.

After all, we have the Federal Reserve likely to cut rates later this year and the European Central Bank will possibly have to do the same thing due to the fact that the German economy has dropped a bit and that of course is a scenario where it brings down enough of the economy. I think you have a pretty range bound year ahead and it does make a certain amount of sense that we just drift around aimlessly. We’re right in the middle of this overall consolidation pattern. So, you could make an argument that we are either at fair value or near fair value. Furthermore, keep in mind that Friday is the non-farm payroll announcement and that obviously will have a major influence on the US dollar.

So as things stand right now, I’m fairly neutral when it comes to this pair. There’s quite a few very neutral FX pairs at the moment, so it really shouldn’t be much of a surprise. Because of this, I’m not expecting big news anytime soon and you probably need to focus on shorter-term charts when trading this pair, as well as many other major currency pairs.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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