EUR/USD Forecast – Euro Continues to Consolidate in a Range

Euro vs US Dollar Technical Analysis

The euro fell initially during the trading session on Monday. But here on the four hour chart, you can see that we are starting to put up a little bit of a fight. This is just more of the same kind of nonsensical trading between 1.08 and 1.09 with the market basically being in the middle. What this tells me is that we don’t have anywhere to be for a while and sometimes that’s fine.

You just need to drill down to shorter time frames. This certainly looks like one of those times. With that being said, we are close to the middle so most traders will be looking for some type of extreme to play off of, either shorting near 1.09 or buying at 1.08. If and when we break out of this area, and one would assume we will, then it gives you a 100 point measured move in either direction.

That could bring in the 1.10 level above, which is an area that’s been important more than once, or possibly the 1.07 level below, which also has been important more than once. In general, though, the way I use this chart most of the time is just to gauge US dollar strength. If it’s rising here, then that means the US dollar is starting to lose a little bit of strength against other currencies that might be moving a bit faster. And of course, the exact opposite is true.

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