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EUR/USD Forecast – Euro Continues to Look Confused

By:
Christopher Lewis
Updated: Jun 20, 2024, 15:40 GMT+00:00

The euro continues to go back and forth in what seems like a mass of confusion. At this point, the market is going to continue to pay attention to the larger, round, psychological figures.

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Euro vs US Dollar Technical Analysis

The Euro initially dropped during the trading session on Thursday, but it does look like it’s trying to recover a bit. The 1.07 level, of course, is an area that’s been important multiple times, so it’s not a huge surprise to see a little bit of a bounce from there. But really, when I look at the longer-term charts, I recognize that the 1.07 level is yet another area that we are paying attention to, and I don’t necessarily think it’s more important than any others. If we do bounce from here and recapture the 1.0760 level, it’s possible that we could go looking to the 1.08 level after that, which of course is a large round psychologically significant figure as well, and also an area where we’ve seen a lot of noise.

Quite frankly, I think that the euro is going to continue to be very noisy due to the fact that we just don’t have a good grasp on what the Federal Reserve is going to do. Remember at one point, people were trying to price in seven interest rate cuts and now we’re down to one, maybe zero. So, it’ll be interesting to see how this plays out and I think that’s part of what we are seeing in this currency pair. All things being equal, this is a market that I think continues to see a lot of choppy and jagged actions. So, because of this, you can’t get overly excited and pile into this pair, I think you are going to continue to see a lot of back and forth chops between each big figure as we try to sort out central bank policy going forward.

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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