EUR/USD Forecast – Euro Continues to Bounce Around in a Range

Euro vs US Dollar Technical Analysis

The Euro has rallied slightly during the early hours on Thursday as we continue to see a lot of noisy behavior. Quite frankly, this is a market that I think given enough time will have to make a decision as to whether or not it wants to remain range-bound longer term or if we are actually going to make some type of move. As things stand right now, the market does tend to bounce around between major big figures such as the 1.08 level below and the 1.09 level above. As we are right between those two and essentially directly in the middle, it makes sense that this market is somewhat neutral, but the momentum over the last couple of months most certainly has favored the upside.

So I think it’s probably only a matter of time before traders try to push the Euro to the 1.09 level. If we can break above there, then it’s likely that we could go looking to the 1.0950 level. In general, I think this is a scenario where you continue to see a lot of short term setups present themselves.

But as far as a bigger move is concerned, we are still light years away from seeing something more definitive. Keep in mind, a lot of this will come down to the Federal Reserve and whether or not they decide to cut later this year, which of course is up in the air at this point, but it certainly looks like the economic numbers are starting to perhaps suggest that they will cut once, maybe twice between now and the end of the year, but that’s still not a 100% certainty.

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