EUR/USD Weekly Price Forecast – Euro Continues to Look Sideways Overall

Euro vs US Dollar Weekly Technical Analysis

The Euro has had a very wild week as it initially rallied, then the ECB cut rate and then the U.S. job market ended up being stronger than anticipated. Because of this, the market looks as if it is every bit as confused as it has been for the last couple of years. We are essentially in the middle of the overall range. And I think at this point, you have to look at this as a market that just doesn’t really know what it wants to do. And that makes a certain amount of sense due to the fact that both central banks are expected to cut later this year.

That being said, the Federal Reserve continues to suggest that they aren’t going to, but the market is certainly leaning in that direction. As long as the market believes that the Fed will come right into the rescue for liquidity, it’s probably only a matter of time before we have to break one way or the other. The question now is what is happening with Europe? You know, let us not forget, there’s still a land war in Europe.

So, I’m not particularly keen on owning the euro, but it’s not necessarily falling apart either. I think this remains a short-term back and forth type of market, simply trying to work off and work out what’s next. I use it as an indicator of US dollar strength more than anything else on short-term charts. That being said, the market is likely to continue to hang around the area it’s in right now, give or take 100 pips until something drastically changes.

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