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EUR/USD Forecast – Euro Continues to Look Weak Despite Slight Bounce

By:
Christopher Lewis
Published: Apr 15, 2024, 13:05 GMT+00:00

The euro bounced slightly during the early hours of Monday, as we have a little bit of a relief rally, perhaps due to the Middle East war not expanding any further.

In this article:

Euro vs US Dollar Technical Analysis

The Euro rallied slightly during the day on Monday as it looks like we are trying to bounce from extreme lows. That being said, this is a market that I think has a lot to worry about in the sense that the ECB is very likely to cut rates later this year and in fact, may do so quicker than the Federal Reserve. After all, the Federal Reserve continues to push back on the timing idea.

And with that being said, I think you have to look at this as a market that probably is more a fate on the rally type of scenario. So, with that being said, I believe the 1.07 level above probably offers a significant amount of psychological and market memory type resistance that you’ll have to pay close attention to with the idea of breaking above there could re-enter the consolidation, but I think by the time you get to the 50 day EMA it’s very likely that the sellers will come in again anyway.

So, bounces are probably somewhat short-lived after this major breakdown. I would anticipate that the Euro probably goes looking to the 1.05 level given enough time. Granted, we’re not going to get there overnight, and it may not even be that easy to get down there, but I do think it’s more or less going to be a grind lower. I believe that the US Dollar is going to continue to see a lot of strength in general over the next few months, as there are a lot of uncertainties around the world.

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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