EUR/USD Weekly Price Forecast – Euro Continues to Rangebound Trade

Euro vs US Dollar Weekly Technical Analysis

The Euro initially tried to rally for the week, but then gave back gains as we continue to see a lot of noisy behavior. All things being equal, I think this is a situation where traders are just simply trying to sort out whether or not the market is going to continue to consolidate or if we’re going to accelerate to the downside. In general, the 1.07 level underneath is the floor in the market, while the 1.10 level above is a significant resistance barrier. We are currently dancing around the 50-week EMA, which of course is something that will attract a certain amount of attention, but all things being equal, I think we remain sideways for a while.

I have no interest whatsoever in trying to get too cute with this market, and I think you are just simply trading back and forth. The central banks in both United States and the European Union are going to be cutting later this year, and that has a major influence on both of these currencies. In other words, I think we’re probably going to see lackluster sideways markets for the foreseeable future. And in fact, last year was pretty much the same thing.

That is typical for this pair. It’ll do a lot of range bound trading for two or three years and then we’ll have a sudden move in one direction or the other. That being said, this is a market that I think you have to be very cautious with getting too big, but you can use it to swing trade on the daily chart or maybe even the four hour chart. Longer term traders are going to have a harder time navigating this market for anything more than a candle or two. Because quite frankly, there’s nothing out there that I think is going to move this market anytime soon.

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