EUR/USD Forecast – Euro Continues to See Choppiness

Euro vs US Dollar Technical Analysis

It appears that the Euro is going to continue to work against the 200 day EMA just above as it looks for some type of momentum. At this point in time, it does look like it is consolidating with maybe a tiny upward tilt, but really at the end of the day, you can’t make too much out of it because it is so choppy.

Furthermore, both central banks are likely to cut rates sometime this year, with the European Central Bank probably going first, so I think a lot of people don’t really know what to do with this pair. Now, on Monday, there is a significant lack of economic, macroeconomic type of numbers, but that being said, it does suggest that perhaps maybe people will be okay taking a little bit of risk just because there isn’t anything to be really worried about.

However, on Tuesday it changes quite quickly with PPI coming out of the United States and that could cause some noise here. It still looks to me like it’s a fade the rally type of market unless you’re trading the ultra-short term charts. Then it’s probably more back and forth. Underneath we have the 1.07 level perhaps offering a target for short sellers and those trying to go long in this market, I believe, are trying to get to the 1.0875 level above. Either way, I think you have a lot of choppy conditions ahead of you. And quite frankly, when this pair behaves like this, I more or less use it as a gauge for US dollar strength and perhaps as a tertiary indicator to other currency pairs.

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