EUR/USD Forecast – Euro Continues to Consolidate

Euro vs US Dollar Technical Analysis

The Euro has fallen a bit during the early hours on Tuesday as we continue to see a lot of choppy behavior. That should not be a huge surprise because that’s what the Euro does, it chops back and forth and it’s a short-term type of market under almost all circumstances. So, with this, it’s not a huge surprise to look at this market and suggest that the 1.07 level is going to be a magnet for price.

Underneath there, we have the 1.0650 level offering support and therefore as noisy as this market is, I think you have to understand that we also have to keep in mind that there are definitive short term boundaries. If we were to break above the 1.0750 level for any length of time, then we are more likely than not, we’ll go look into the 1.08 level. Underneath, if we were to break down below the 1.0650 level, then the 1.06 level would be targeted.

At this point, I just don’t see much changing, and therefore, we probably drop a little bit before bouncing a little bit, and on and on. If we do break out of this range, perhaps we can get momentum going, but with the ECB cutting recently, and the Federal Reserve obviously somewhat in play, but it looks like we’re still watching the trading public just wish that the Fed would cut, not necessarily getting it. Consider this a pair that will remain very difficult, and essentially without any type of real conviction.

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