EUR/USD Forecast – Euro Continues to Trade in a Range

Euro vs US Dollar Technical Analysis

As you can see, the Euro rallied a bit in the early hours on Monday, but then turned around to show signs of weakness. At this point in time we look likely to see, perhaps, an attempt to get down to the 1.07 level, which I think attracts a lot of attention.

The 1.07 level has been the bottom of the overall consolidation, and therefore I think a lot of people will be paying attention to it for a potential buying opportunity. With that being said, you also have to keep in mind that the moving averages are pretty flat, so I think we are going to stay in this range. Right now, we’re looking at a situation where traders are trying to sort out who’s cutting when as far as interest rates, and it certainly looks like both central banks will be this year. In this scenario, it is likely that we are going to be noisy, but not necessarily a situation where there is no real driver or either against or for a particular move longer-term.

So that’s why I think we kind of just hang around in this range. But if we do break down below the 1.07 level, it opens up the possibility of the Euro trading down to the 1.05 level. If we turn around and rally from here, the 1.10 level above is a significant resistance barrier that I think would take an astronomical amount of effort to break through. So, I more or less am expecting a little bit of a drift lower here, only to find a little bit of support before it’s all said and done.

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