EUR/USD Price Forecast – Euro continues to chopThe Euro rallied did run into a bit of steam over the last couple of days, but we are hanging about the 1.16 level, an area that obviously has a lot of importance attached to it due to the large, round, psychological significant number.
The EUR/USD pair has been very noisy over the last 24 hours, bouncing around the 1.16 level. At this point, it probably comes down to the US dollar more than anything else, so keep that in mind. Pay attention to headlines coming out of the European Union, because they will obviously affect how the world perceives the ability for a Brexit to happen, which right now is one of the biggest headlines risks when it comes to the Euro, and then of course we have the noise coming out of the emerging markets which will lift or shrink the US dollar depending on the day, so there are a lot of moving pieces to deal with.
When I look at the longer-term charts, I can see that there is a range between 1.15 on the bottom and 1.18 on the top. Ultimately, there is a lot of noise to be had but I do think that eventually we will have to make some type of decision. In the meantime, I think that buying short-term pullbacks probably makes a lot of sense as we are closer to the bottom of the larger consolidation than the top. I would expect much, and it would expect that a lot of the noise will continue. I would be focusing more on short-term trades than long at this point, as we simply do not have the catalyst yet to break the overall range yet.