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EUR/USD Forecast – Euro Continues to See Consolidation Hold

By:
Christopher Lewis
Published: May 30, 2024, 12:35 GMT+00:00

The euro bounced a bit in the early hours of Thursday, as the market continues to see a lot of interest at the 1.08 and the 1.09 levels. This means that the market doesn’t necessarily have any real conviction at the moment, much like the rest of the majors pairs on the whole.

Euro vs US Dollar Technical Analysis

We rallied a bit during the trading session on Thursday as the 1.08 level continues to be an area that many people will be paying attention to. It’s a large round figure. This area was previously resistant but is now support.

Above, we have the 1.09 level, which has been like a ceiling. And I think that comes into the picture as well. As we are at the bottom of this roughly 100 point range. Why wouldn’t we balance? It makes quite a bit of sense. The market bouncing, though, doesn’t necessarily mean anything other than we’re in the same pattern. The core PCE numbers come out of the United States on Friday so that could be a big mover of the dollar and hence this pair. If we were to break down below the 1.0775 level, then we could drop down to 1.07.

If we break above 1.09 then we could go to the 1.10 level but I’m not holding my breath. I think we are just simply killing time and trying to figure out what to do about the ECB possibly covering and cutting rates and the other side of the equation would be the Federal Reserve. Are they going to actually stay tighter for longer? We just don’t know. So, with that being said, I think you continue to see a lot of noisy behavior overall.

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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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