EUR/USD Forecast – Euro Continues to Hang Around

FXEmpire.com -

Euro vs US Dollar Technical Analysis

The euro has been hanging around the 1.07 level for a while now, and the Monday session has been somewhat bullish. All things being equal though, we have a lot of noise here. And I do think that it is going to be difficult for the market to truly take off from here.

The 50 day EMA above offers a fair amount of resistance just below the 1.08 level, and underneath we have plenty of support and the 1.06 level. So, I think all in all, this is a market that is going to continue to be very sideways and noisy, which of course does make a certain amount of sense. Both central banks are likely to have to loosen monetary policy sooner or later, but I do favor the US dollar at the moment because the ECB is likely to cut rates sooner than the Fed.

And then on top of that, we also have to worry about geopolitical concerns. And that typically favors the greenback in general. It doesn’t necessarily mean that the euro will melt down against the US dollar, just that it probably will struggle here. So with that being said, I think this is more or less a sideways market with a bit of a down tilt.

So, you’re looking for signs of exhaustion to sell. But I wouldn’t get overly aggressive here. I don’t think this market truly knows what it’s going to do six months out. So right now, we’re just kind of treading water in the region of 1.07 as it has been a magnet for price multiple times in the past.

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

This article was originally posted on FX Empire

More From FXEMPIRE:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.