EUR/USD Forecast – Euro Continues to Look For Its Next Move

Euro vs US Dollar Technical Analysis

The Euro continues to jump back and forth in a very tight range as traders just don’t seem to have anywhere to be at the moment. The 1.09 level is an area that will be like a bit of a magnet for price, but quite frankly, you can say the same thing about most large figures. Over the last couple of years, we’ve seen the euro bounce around between the 1.09 level and the 1.08 level, or the 1.09 level and the 1.10 level. In general, this is a market that I think will continue to go from one big figure to the next.

Ultimately, this is a scenario where traders continue to trade on short-term charts. But when you go back to the last couple of years, the euro just seemingly is a very neutral currency. That does make a certain amount of sense because the Federal Reserve, of course, is tighter than the ECB, but they are expected to cut rates probably in September.

So really, you have a couple of central banks that are going back to what they were a couple of years ago, as far as interest rate differential. With that being said, I think you’ve got a scenario where market participants will continue to be very sideways overall. But if you are a short-term trader, this might be a nice range-bound trading environment that you can be involved in. Short-term charts are probably the best way to approach this market, as the market is so undecided.

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