EUR/USD Forecast – Euro Continues to Chop Around on Monday

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Euro vs US Dollar Technical Analysis

The Euro initially rallied during the trading session on Monday in the early hours but has since pulled back. The 1.09 level above seems to continue to offer significant resistance so we will have to pay attention to that level. If we were to break above the 1.09 area, obviously, it looks like we are going to have to build up the necessary momentum to even make that happen.

On a short-term pullback, you would expect to see a 1.08 support level, especially now that the 200-day EMA sits there and the 50-day EMA is getting ready to cross above there as well, forming the so-called Golden Cross. All things being equal, both of these banks are probably going to be cutting rates, but it’s also worth noting that most of the EU was closed during the day. So that has also affected liquidity in general. I think a lot of this comes down to interest rates in America, whether they rise or fall, and its effect on the US dollar.

That being said, keep in mind that this is a market that is notoriously choppy and I don’t see anything here of the last couple of trading sessions that suggests that we won’t have anything more than that. In this pair, I often use it as a proxy for the US Dollar Index, and where the USD might be going, as getting the USD correct will generally help with most trading decisions in various markets, not just forex pairs.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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