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EUR/USD Forecast – Euro Continues to See “meh” Behavior

By:
Christopher Lewis
Published: Jul 9, 2024, 12:38 GMT+00:00

The euro is somewhat soft in the early hours on Tuesday, but at this point in time, the market seemingly is comfortable with the idea of simply bouncing back and forth between big figures, such as the 1.07 level, the 1.08 level, etc.

In this article:

Euro vs US Dollar Technical Analysis

The Euro has pulled back just a bit, and as you can see, it looks like the 1.08 level is going to be a situation where I think a lot of people are into the market one way or the other. The market is likely to see a lot of questions asked of it, mainly due to the fact that the ECB has already cut rates and people are trying to sort out whether or not the Federal Reserve is going to do the same. The market typically moves between one large figure or another.

So, for example, the 1.08 level being broken could open up a move to 1.07. On the other hand, if we bounce, we could go to 1.09. That’s been the case for almost two years now, and I just don’t see it changing. Quite frankly, there’s no reason for it to change because most of the trading world is looking at this as summertime trading, which means there will be less liquidity.

As long as that is a very real proposition, you have to assume that the euro will be somewhat muted. Quite frankly, it’s one of your more muted pairs anyways, so it all ties together for short-term choppy back-and-forth trading more than anything else. With this being the case, I think the market will continue to see bounces from time to time, and therefore I think you need to keep an eye on the market for small and subtle moves on the short-term charts.

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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