EUR/USD Forecast – Euro Continues to Chop Back and Forth

Euro vs US Dollar Technical Analysis

The Euro has done very little during the early hours on Friday and therefore we continue this overall sideways chop. At this point, we are somewhere between the 1.08 level on the bottom and the 1.09 level on the top. So, as we are just hanging out in this area, it does make a lot of sense that we would see indecision.

I do believe that eventually we break in one direction or the other, but I also believe that the next large figure will cause a certain amount of resistance to a continuation of a move in either direction. With this, I think we are basically sideways in general, and I think this is a scenario where you have to focus on short-term moves if you are putting money to work.

Ultimately, this is a market that I am somewhat ambivalent about, but I use it a lot to determine what could happen with the US dollar. And what I will do at that point is then take a position in other pairs. For example, if the US dollar looks weak and it looks like commodities are going to strengthen, I might buy the Australian dollar against the US dollar, essentially using this pair as a proxy for the dollar index.

Whether or not that pans out today, we will have to wait and see, but it certainly looks like things are relatively flat, so at this point I’m essentially neutral on the euro against the US dollar. This is the case most of the time to be honest, as this pair isn’t necessarily known for a lot of momentum overall.

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