EUR/USD Forecast – Euro Continues to Show Confusion

Euro vs US Dollar Technical Analysis

The Euro fell a bit during the trading session and now it looks like the market is likely to go looking towards the lower levels of the consolidation phase that we have been in. Ultimately, this is a market that I think given enough time will perhaps go down toward the 1.07 level, but also keep in mind that we could rally in the short term and continue to be very volatile. The FOMC meeting of course, got a lot of attention during the previous session, but it appears that, traders are starting to understand the fact that the ECB did in fact cut and the Federal Reserve is just kind of maybe possibly thinking about it.

With that, I still think the U S dollar has a bit more strength against the Euro. But all things being equal, I think we have expanded the consolidation to include 1.07 on the bottom and 1.09 on the top. That makes the 1.08 level essentially fair value. So, I think we are just opening up the range. But at the end of the day, I still expect this to be a very sideways market. However, that’s not a huge surprise, considering that the market is typically one that is noisy, and quite frankly often has no real directionality. This is a market that I think will continue to respect these “big figures” along the way, but at this point in time, I suspect that the market is best traded from a short-term perspective, as shown on the four hour chart.

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