EUR/USD Forecast – Euro Continues to Look For Its Footing

EUR/USD Forecast Video for 15-02-2024

Euro vs US Dollar Technical Analysis

The Euro has stabilized a bit during the trading session here on Wednesday as the markets continue to try to sort out what central banks are going to do. After all, the European Central Bank is probably going to have to play catch up with the Federal Reserve, at least, that’s the perception as Germany continues to head into recessionary issues. With that being the case, it does make a certain amount of sense that the ECB will have to loosen monetary policy. And furthermore, we have seen the consumer price index in the United States come out hotter than anticipated, suggesting that perhaps the Federal Reserve won’t be cutting anytime soon.

With all of that, it does make sense that the Euro continues to break down a bit, but I also see that this is a market more likely than not, over the course of 2024, we’ll try to settle into some type of range as both central banks should be cutting interest rates. So with that being the case, it’s likely that we will see a situation where we eventually find a bottom and a top and just bounce around. Right now, I suspect that if we do continue to go a little bit lower, the 1.05 level will be that bottom.

The top, at this point, the biggest candidate is the 1.10 level, but we’ll have to wait and see. If we were to break above the 200 day EMA, that would be a very bullish sign. And that being the case, I think it does make a lot of sense that we could see an attempt to break above there. And if we do, there’s probably some FOMO coming after that. Either way, it looks like we’re at least trying to stabilize and get back to 1.0750. Again though, if we can break down below 1.07 somewhat significantly, that will be bad for the Euro and almost certainly send it down to the 1.05 level.

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