EUR/USD Forecast – Euro Continues to Be Choppy

Euro vs US Dollar Technical Analysis

The euro has been all over the place during the trading session on Friday as we got the jobs report coming out of the United States. Keep in mind that liquidity may have been a little bit lacking due to the fact that Independence Day was on Thursday in America, and you can make a strong argument that a lot of professionals in New York just simply weren’t around. At this point, it looks like the 1.08 level is trying to offer a little bit of short term support, but if we break down below there, and it really wouldn’t surprise me, then we will go look into the 1.0775 level.

On the other hand, if we can break above the 1.0850 level, then it opens up the possibility of a move to the 1.09 level. I think that’s what we’re looking at here. The euro just simply bouncing around in roughly 50 point range is the euro of course, is typically very choppy anyway. And the fact that people are still trying to guess what the Federal Reserve is going to do going forward causes a lot of chaos.

The ECB has already cut rates, and now we have to ask whether or not they are going to continue to do so. It’s hard to understand because quite frankly, I don’t think the central bankers know what they’re going to do. And as long as that’s the case, we are going to continue to see a lot of noisy back and forth trading.

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