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EUR/USD Forecast – Euro Continues to Look For Buyers

By:
Christopher Lewis
Published: Apr 17, 2024, 12:53 GMT+00:00

The euro continues to see a lot of noisy action, but it also looks as if we are ready to test the 1.07 level above, which was previously support.

In this article:

Euro vs US Dollar Technical Analysis

The euro rallied slightly during the trading session on Wednesday in the early hours, as it looks like we are trying to get back to the 1.07 level. The 1.07 level is an area that previously had been supported, so there should be a significant amount market memory, in that area.

I would anticipate that we continue to see more or less a fade the rally type of situation. But if we recapture the 1.07 level, then we could run all the way to the 50 day EMA. Underneath we have the 1.06 level offering support. And if we were to break down below there, then I think the euro really takes it on the chin, perhaps dropping down to the 1.05 level.

Keep in mind that the European Central Bank is likely to cut rates in the next few months, and right now, most traders are thinking that perhaps the Federal Reserve is likely to cut rates later in the year. So in the short term, it’s likely that we will have a situation where the euro will be on the back foot. And the geopolitical concerns around the world, of course, have driven the demand for the U.S. dollar much higher and therefore, this all tracks really well at this point in time.

I like fading signs of exhaustion on short term rallies that you see some type of momentum only to give it back up. The Euro might be short-term bullish, but at the end of the day, the market is betting on a lot of concerns around the world to support the USD more than anything else.

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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