EUR/USD Forecast – Euro Continues to Respond to Range

Euro vs US Dollar Technical Analysis

The Euro has plunged after the jobs number in the United States came out much hotter than anticipated, which of course is something that traders will be concerned about in the sense that it’s possible the Federal Reserve won’t be cutting rates anytime soon. If that is in fact going to be the case, then it’s likely that the US dollar will continue to strengthen, at least in the short term. That being said, this is a market that has been range-bound for quite some time, and I just don’t see how that changes.

The 1.08 level underneath is a massive support level that a lot of people will be paying attention to. And therefore, if we were to break down below the 1.08 level, it could very well change the overall attitude of markets. But right now, that doesn’t look as likely as a result. Remember, a lot of times, traders don’t want to put on a huge position heading into the weekend anyways, and they certainly don’t want to fight some type of massive noise.

So, with that being said, I think that we will eventually get some type of short-term buying opportunity. But I think before it’s all said and done, traders will find a reason to keep this range bound. If we do break down below 1.08 though, then I think 1.07 is a very real possibility. This is a market that I think is going to be very choppy and range bound most of the year. That’s not a real stretch considering it normally is. And while the ECB did cut rates the previous session, there are still plenty of people out there that believe the Federal Reserve will do so later this year.

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