EUR/USD Forecast – Euro Continues to See Noisy Action

EUR/USD Forecast Video for 09-02-2024

Euro vs US Dollar Technical Analysis

The Euro has been slightly negative for the trading session again on Thursday, as we continue to test the bottom of what I think is going to end up being a pretty significant consolidation region, the 1.07 level is an area underneath that I think a lot of people will be paying attention to, so it is definitely worth doing the same.

If we were to break down below the 1.07 level, then I think it opens up the market for a drop down to the 1.05 level. The 1.05 level of course, is a large round number that will attract a lot of attention and therefore I think it could offer quite a bit of support. On the other hand, if we turn around and break above the 200 day EMA, we could go looking to the 50 day EMA after that. Obviously being a move against the US dollar, you would probably see the US dollar lose some strength across the board. In the end, I think this is a market that is trying to sort out its yearly range because quite frankly, trading the Euro is about trading ranges.

The Federal Reserve is likely to cut rates in 2024 and we have already seen that sorted out in the U S dollar in general, but the euro itself has been beaten up lately due to the fact that the ECB is almost certainly going to have to do the same. This is especially true now that the German economy seems to be heading into recession. So with all of that being said, I think you have a situation that may set up for a whole lot of back and forth this year. I suspect we are probably closer to the bottom than the top at the moment, though. So, I’m just waiting to see if we get some type of significant bounce.

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