EUR/USD Forecast – Euro Finds Support in Thin Markets

Euro vs US Dollar Technical Analysis

The euro initially fell a bit during the trading session on Friday, but then turned around to show signs of life as we are forming a bit of a hammer. That being said, I would not read too much into the market other than the fact that we at least didn’t fall as the Americans weren’t on board, which means liquidity becomes an issue later in the day.

That being said, we are looking at a market that is very range bound and we are getting close to the bottom, we’re about 80 pips above as I record this. The 1.07 level for me is the bottom of the market right now, while the 1.10 level above is the resistance. Currently, both moving averages are flattening out, both the 50 day EMA and the 200 day EMA, and therefore it tells me we don’t have anywhere to be. It’s not a huge surprise here because the Euro typically is rather choppy and lackluster, but this is an excellent indicator of what’s going on with the US dollar. So, we’ll have to see how it behaves and how we’ll extrapolate that information into other currency pairs.

It does look like it’s ready to recover a little bit, so a short-term swing trade may be on deck. But keep in mind that Monday features Europe not at work and the Americans coming back. So probably much more of the same, just maybe a little bit of a rise, but not anything to get overly excited about.

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