EUR/USD Forecast – Euro Continues to See Volatility

EUR/USD Forecast Video for 19-01-2024

Euro vs US Dollar Technical Analysis

The Euro initially rallied during the Thursday session, as you can see on the chart, but it also has given back a little bit of momentum. So, it does suggest that the market is probably going to continue to see a lot of back and forth choppiness, even though we may be in an area where the buyers could return.

I think given enough time, we will eventually have some type of range, and the range, of course, is something that we are still, I think, trying to carve out. The one area that I see very prominently on the chart is the 1.10 level, which is an area that obviously is a large round number that will capture a lot of attention, therefore I think it makes a lot of sense that it holds as some type of ceiling. If we can break above there, then I do believe that the market will probably go much higher, maybe to the 1.1150 level or even 1.1250 above.

Now, having said that, I do think it’s going to be very difficult to get above there and I think the 1.10 level might end up being the ceiling for the next several months. On the downside, the market currently is looking at the 200 day EMA as a potential floor and then after that we could be looking at the 1.0750 level. Either way, I think you’ve got a market that is going to be one that you have to be very reasonably positioned and therefore you don’t want to have too much in any one currency pair right now. And I think the Euro isn’t going to be any different to any other market in that regard. Markets overall seem a little bit lost at the moment, and the EUR/USD pair is a great representation of market behavior overall as it is one of the largest markets in the world.

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