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EUR/USD Forecast – Euro Rallies Towards Resistance on Tuesday

By:
Christopher Lewis
Published: May 28, 2024, 12:12 GMT+00:00

The euro rallied during the session on Tuesday, as we are looking to determine whether or not the EUR/USD pair can finally break above the 1.09 level, an area that has been important more than once.

In this article:

Euro vs US Dollar Technical Analysis

We have been slightly positive over the last couple of hours, and it looks at this point in time like the Euro is going to attempt to challenge the 1.09 level. This is an area that has been important as resistance more than once. And it’s also an area that we probably have quite a bit of market memory at. When you zoom out at the chart, it’s obvious that the 1.08 level underneath offers support while 1.09 level above has been resistant multiple times going back to the beginning of the year. If we do break above there, then it’s possible that we could go looking to the 1.10 level.

In general, I think this is a market that remains somewhat sideways mainly due to the fact that traders are trying to figure out what we are going to do with interest rates. After all, the United States is likely to sit on higher rates for a while. Well, the ECB is expected to cut sooner rather than later, so it’ll be interesting to see how this plays out. All things being equal, you would expect some type of sell-off.

You would also expect a sell-off if there is a geopolitical issue, which is not really hard to imagine at the moment, but the market is going higher at the moment and that’s really what matters. Pay attention to what the market’s doing, not what it should do. In general, I think this is a situation where we continue to see a lot of choppy behavior and I am watching the 1.09 level for signs of exhaustion that I can start shorting, but right now just don’t have that.

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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