EUR/USD Forecast – Euro Continues to See Noisy Action

Euro vs US Dollar Technical Analysis

The Euro has rallied ever so slightly during the early hours on Wednesday, but at this point, I think markets are going to end up being very quiet over the next couple of days because of a multitude of reasons, not the least of which will be the Independence Day celebration in America on Thursday.

But we also have the UK parliamentary elections on Thursday and then Friday we get the jobs report kind of hanging around and trying to sort out where the euro goes next. When you look at the euro from a little bit longer term perspective, you begin to see that we have just been bouncing around between 100 point levels: the 1.07 level, the 1.08 level, both are areas of interest at the moment, and then we have the 1.09 level above there.

A breakdown below the recent swing low could open up a move down to the 1.06 level, but really at this juncture, I think we’ve got a scenario where traders are just trading back and forth in short term moves. The ECB has cut rates and people are already trying to figure out whether or not the Federal Reserve will. Really at this point, I think this comes down to the jobs numbers next, but pay attention to these big figure handles because they certainly seem to have a major influence on what happens in this pair. Because of this, I think you are going to be relegated to trading this market in the short-term charts overall. This is typical for summer trading in this market.

For a look at all of today’s economic events, check out our economic calendar.