EUR/USD Forecast – Euro Continues to See Choppy Sideways Action

Euro vs US Dollar Technical Analysis

The Euro has been slightly positive during the early hours on Monday, but quite frankly this is a situation where we just don’t have anywhere to be. The market lacks any serious economic announcements on Monday, so it’ll be interesting to see if we see any type of momentum pick up. If we break down below the lows of last week, we could open up a move down to the 1.08 level. On the other hand, if we can break above the 1.0950 level, then the 1.10 level above could be targeted.

And keep in mind that both of these central banks are more likely than not to start to consider the idea of loosening monetary policy in the future. And therefore, I think traders don’t really know what to do with this pair. The Euro is more risk on, while the dollar is more risk off. So, one would have to assume that in this environment, the US dollar probably is still somewhat attractive.

So, I don’t necessarily think that we’re going to just see this market take off to the upside and just start running straight up in the air. In other words, I think what we’ve got is more of this sideways chop with the occasional move to the next big handle only to turn around and do all of it again. This is a difficult pair to hold onto for bigger moves, and I suspect there will be more of this action ahead, as traders don’t really seem too confident in any particular narrative.

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