EUR/USD Forecast – Euro Continues to Look Sluggish

Christopher Lewis
Published: Apr 23, 2024, 12:37 GMT+00:00

The EUR/USD continues to see a lot of sluggish behavior, as both central banks are likely to loosen monetary policy later this year.

In this article:

Euro vs US Dollar Technical Analysis

The Euro rallied significantly during the early hours of Tuesday. But the 1.07 level is an area that a lot of people have paid close attention to support and should now be resistant based on market memory. That being said, this is a market that I think will continue to be noisy more than anything else.

And as a result, there should be plenty of volatility and choppiness. The 1.06 level underneath is support, 1.07 is resistance so in the short term, I think we just go back and forth. Keep in mind that the European Central Bank is likely to cut rates later this year, and that’s exactly what we’re seeing priced in here.

That being said, the Federal Reserve staying tighter for longer of course is going to be a driver of US dollar strength. Beyond that, we also have a situation where the concerns around the world geopolitically will of course have a major influence on the US dollar also. So, with that being said, I think you expect to see a lot of noisy but short-term rallies that show signs of exhaustion when you start to sell. If we can break above the 50 day EMA, then we can start to have a different conversation but right now this is a market that still looks choppy but probably leaning a little bit to the negative side more than anything else.

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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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