EUR/USD Price Forecast – Pair Continues to Consolidate

The pair continues to trade near the 1.16 and the 1.17 region in a matter of consolidation and ranging as the Eurozone awaits further developments and data. There is not much by way of data for today though we have the services PMI data from Germany and France. These are not expected to impact the euro too much and hence it would be interesting to see the price action for today.

EURUSD Under Pressure

On the other hand, it is a holiday in the US today which is likely to affect the liquidity and the volatility in the markets for the day. There has not been much by way of data over the last few days but the markets have been jittery and the investors have been uncertain for a variety of reasons. It is clear that the dollar holds the upper hand at this point of time and with the various trade issues that we are seeing globally, it is unlikely that the euro would recover anytime soon.

We are going to see some tough times ahead for the market, as we believe and it is likely that the dollar would get even more strengthened in the coming days due to this factor. Add to this, the 2 more rate hikes that we are likely to see from the Fed in the rest of the year and we have a good package for dollar strength. This is best seen in the gold markets which have been struggling and we are seeing more of that in the euro as well which we believe would continue to be under pressure.

The trade war between the US and China is clearly spreading out and this is likely to affect the economy of the Eurozone as well as the countries within this zone also join this trade war. This is only going to make the incoming data even more worse than it has already been and this complicates the situation further for the euro.