EUR/USD Weekly Price Forecast – Euro Continues to Look For Direction

Christopher Lewis
Updated: Jun 2, 2024, 10:09 GMT+00:00

The euro continues to look somewhat ‘landlocked’ at the moment, as we have been consolidating for over a year now if you zoom out. We are currently in the middle of this range, and therefore we need to think about this pair being “meh.”

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Euro vs US Dollar Weekly Technical Analysis

The Euro has gone back and forth there in the course of the trading week, as we continue to bounce around between the 1.08 level and the 1.09 levels. Ultimately, this is a market that is trying to sort out its next move because we have the ECB likely to cut this summer and hope burns eternal for the Federal Reserve to cut, and it seems like every time they convince the market that they are not going to, then the market finds another reason to believe that they will.

So I think what you have here is a situation where the pair is going to be extraordinarily sideways and range bound for the year and I believe we are basically in the middle of that range, so I’m as neutral and as ambivalent of the euro right now that I think it could possibly be.

When you look at the chart, you can see that since the beginning of last year, we’ve been bouncing around and we’re basically in the middle of that range. I don’t see anything changing, at least not at the moment, unless there’s a geopolitical issue, which could have people racing towards the US dollar. We’ll just have to wait and see. Longer term traders are probably better off using this as an indication of US dollar strength or weakness, and transferring that knowledge into other markets. As far as a longer term buy and hold, or possibly even a sell and hold position in this pair, I just don’t see it setting up for that right now.

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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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