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EUR/USD Forecast – Euro Continues to See Momentum

By:
Christopher Lewis
Published: Apr 25, 2024, 13:13 GMT+00:00

The euro has been slightly positive recently, but at this point in time it is obvious that there are a lot of sellers above, and therefore it is likely to see a lot of volatility.

In this article:

Euro vs US Dollar Technical Analysis

The Euro has rallied a bit during the trading session on Thursday and has broken above the 1.07 level. That being said, the market looks very likely to continue being noisy and any rally at this point in time, I do think, is living somewhat on borrowed time. This will continue to be a situation where sooner or later, there are a lot things out there that could be influential.

And the reason I say that is that we have so much, in the way of negative pressure previously. Now, that doesn’t mean we can’t go higher. It just means that sooner or later, the weight of the selling pressure gets to the market. The 50 day EMA and the 200 day EMA both offer resistance above. And I think signs of exhaustion anywhere near that level are selling opportunities.

If we can break above both of those moving averages, then obviously that would be positive and could send the euro towards the 1.10 level. Ultimately, I think this is a pair that is going to trade very much in the same range it did last year. This means between 1.05 on the extreme bottom and 1.1250 on the extreme top.

The reason, of course, is both central banks are likely to cut rates later this year and therefore there’s no clear winner here, other than the fact that the ECB may be cutting rates sooner than the Federal Reserve. There is also the geopolitical issue when it comes to this pair. If the world goes running for safety, that means they go running to the greenback.

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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