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EUR/USD Forecast – Euro Plunges Overnight Only to Recover

By:
Christopher Lewis
Published: Apr 19, 2024, 12:39 GMT+00:00

The US Dollar saw a lot of gains overnight, as the news hit the wires that Israel attacked Iran. Because of this, traders ran to the safety of the greenback, as they typically will do. However, as the nature of the attack became clear, the market turned right back around.

In this article:

Euro vs US Dollar Technical Analysis

You can see we’ve been all over the place during the trading session on Friday and that does make sense as there was a lot of fear out there as Israel hit Iran in the latest tit-for-tat escalation. That being said, it appears that it was very minor and somewhat well calculated just a face saving exercise more than anything else. And it appears that the markets have calmed down as a result. So, at the end of the day, we have found ourselves basically where we started. And quite frankly, that may not be a bad thing. After all, we have to go into the weekend and of course, nobody really knows what happens while we cannot react in our portfolios.

The Iranians may strike back, and we may get chaos again. From a technical analysis perspective, it’s obvious that the 1.07 level above is important. It was once support, so it should now be resistance. Underneath, the 1.06 level offers support. So I think at this point in time, we will probably stay in this 100 point range until we get some type of momentum building fundamental announcement, some type of event, anything to get the markets moving. In the short term, it’s a lot of back and forth, reversing to the mean type of action. In other words, you will be trading short-term and small as far as I can see in the near term.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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