EUR/USD Forecast – Euro Continues to See Choppiness

Euro vs US Dollar Technical Analysis

The Euro has fallen quite a bit over the last couple of days as the ECB meeting came and went. Ultimately though, this is a market that I think is just simply going to hover right around the 1.09 level. The euro has been bouncing back and forth between large round figures such as 1.09, 1.10 and 1.08. And therefore, I think you need to look at it through the prism of just going from point A to point B. The market is rather choppy, but that’s really nothing new.

And therefore, I think you have to look at this through the prism of maybe an indicator of where the US dollar is going. That’s most of what I actually use the euro against the US dollar for. All things being equal, this is a market that will move on risk appetite, and it’s probably worth noting that the ECB has already started its rate cutting cycle, but it’s obviously not jumping right into it.

It is worth noting that at the press conference, they stated that the September meeting is most certainly live and therefore we could have a situation where traders may continue to punish the euro. We’ll have to wait and see how that plays out. But as things stand right now, I think this is a market that will continue to be very choppy, and simply a lot of noise at this point in time. I believe that a lot of what we will be looking into will be the latest noise coming out of the two central banks.

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