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

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the course of the trading session here on Wednesday. And at this point in time, it’s probably worth noting that we are hanging around between the 50 day EMA and the 200 day EMA, which of course, both of those indicators tend to attract a lot of attention.

If we can break above the top of the shooting star from the Tuesday session, it does open up a potential move to the 1.0950 level. Underneath, if we break down below the 50 day EMA and perhaps the micro swing low, then we could open up a move to the 1.07 level. In general, this is a market that I think continues to see a lot of choppiness and volatility and quite frankly, that’s not a huge surprise.

Both of these central banks are likely to cut rates later this year and that of course keeps things very uninteresting. And therefore, I think you’ve got a situation where the market is likely to just grind back and forth most of the year. We’re basically at fair value so I use this as a sign as to whether or not the Euro or the Dollar is stronger and then trade it against other currencies.

If you are a short term trader that likes to trade very short-term charts, then you might have a little bit of range-bound trading in this area here that you can get involved in. But quite frankly, I just don’t want to be bothered until we get to one edge or the other. But I do keep it on as an indication of US dollar strength or weakness.

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