EUR/USD Forecast – Euro Continues to See Choppiness

Euro vs US Dollar Technical Analysis

The euro has rallied slightly during the early hours on Thursday, but keep in mind Thursday was Independence Day in the United States and perhaps even more importantly, we get the Non-farm Payroll numbers on Friday in what could be a somewhat thin session. So, with that being said, I think you have to be cautious about reading too much into this chart.

However, when you look at the chart over the last several months, we just go back and forth from one big handle to another. This is part of why the spread is so tight with the Euro because there’s plenty of liquidity. It really doesn’t go anywhere. I think that will continue to be the case for the rest of the summer.

So, if we do break to the upside, the 1.0850 level would be your first target followed by the 1.09 level. A breakdown from here opens up a move down to the 1.0750 level and then possibly the 1.07 level. I do think that we’ll probably get some type of knee-jerk reaction to the employment figures, but really at the end of the day, I wouldn’t be surprised to see a round trip from wherever we run to after the announcement.

That’s actually quite typical for this pair. It tends to go all over the place and end up where it started. There really isn’t a whole lot to move the markets at the moment. People are just somewhat in the middle of conjecture that perhaps the Federal Reserve might cut rates sometime between now and the end of the year, but the ECB already has, so that would basically put us to where we were about a year and a half ago, or a year ago. So, with that, this is a market that I think continues to be very noisy and nonsensical.

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