EUR/USD Forecast – Euro Continues to Hang Around

Christopher Lewis
Updated: Apr 29, 2024, 13:19 GMT+00:00

The euro continues to see a lot of noise, as we are hanging about the same general area we have been in for some time. This shows just how undecided we are at the moment.

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Euro vs US Dollar Technical Analysis

The euro has been hanging around the 1.07 level for a while now, and the Monday session has been somewhat bullish. All things being equal though, we have a lot of noise here. And I do think that it is going to be difficult for the market to truly take off from here.

The 50 day EMA above offers a fair amount of resistance just below the 1.08 level, and underneath we have plenty of support and the 1.06 level. So, I think all in all, this is a market that is going to continue to be very sideways and noisy, which of course does make a certain amount of sense. Both central banks are likely to have to loosen monetary policy sooner or later, but I do favor the US dollar at the moment because the ECB is likely to cut rates sooner than the Fed.

And then on top of that, we also have to worry about geopolitical concerns. And that typically favors the greenback in general. It doesn’t necessarily mean that the euro will melt down against the US dollar, just that it probably will struggle here. So with that being said, I think this is more or less a sideways market with a bit of a down tilt.

So, you’re looking for signs of exhaustion to sell. But I wouldn’t get overly aggressive here. I don’t think this market truly knows what it’s going to do six months out. So right now, we’re just kind of treading water in the region of 1.07 as it has been a magnet for price multiple times in the past.

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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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