EUR/USD Forecast – Euro Continues to See Choppy Behavior

Euro vs US Dollar Technical Analysis

The Euro has been choppy over the last several hours, opening up the week on Monday hanging around the 1.07 level. The 1.07 level is an area that’s been important multiple times in the past, so it’s not a huge surprise. And of course, we have recently seen the Euro sell off quite drastically. So, the idea that perhaps we are trying to find some type of bottom is also not overly surprising.

There isn’t too much out there to move the markets from an economic announcement standpoint during the session on Monday with the Empire State Manufacturing index being the biggest thing and quite frankly, that’s generally not a major market mover, so I think we have to look at this through the prism of a market that’s just simply trying to find its floor as we continue to bounce around between each 100 pip level.

If we rally from here, we will find a little bit of noise right around the 1.0740 level, but then after that, it could go racing towards the 1.08 level. If we break down and clear the latest swing low at 1.0670, breaking that to the downside opens up a move to 1.06. At this point, I think it’s becoming increasingly obvious that the euro is just going to be somewhat range-bound this year, which isn’t exactly uncommon, as the EUR/USD pair has a small spread for a reason, as the market is generally one that isn’t ready to move very often. With this, I am continuing to use the pair to determine USD strength or weakness in all of my trading overall.

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