EUR/USD Forecast – Euro Continues to See Sideways Action

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the course of the trading session here on Tuesday as we danced around the 1.07 level. So at this point in time, I think we have a situation where markets are just waiting to sort out what the Federal Reserve is going to do. While an interest rate cut isn’t likely, there is the possibility of some kind of attitude that Jerome Powell could bring to the press conference, and that could have traders repositioning their trading during the meeting on Wednesday.

So, I suspect that Tuesday might be somewhat quiet, while Wednesday might be crazy. Just above, we have the 50 day EMA, and then we have the 1.08 level, which features the 200 day EMA. So I think there’s a lot to chew through to the upside if we do rally, while on a breakdown below 1.0650 we could drop down to the 1.06 level, which was the most recent swing low.

Anything below there probably sees not only the Euro supper but the US dollar strengthening against almost everything. In general, I expect very choppy and somewhat quiet conditions for the next 24 hours, but once we get through the press conference and the Federal Reserve, then we may get a little bit more momentum. In general, this is a market that I think is going to spend most of the year chopping back and forth, as both central banks are expected to cut rates sooner or later, although the ECB is probably going to do it quicker than the Federal Reserve.

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