EUR/USD Forecast – Euro Continues to See Sideways Action

Euro vs US Dollar Technical Analysis

The Monday session of course has been a little bit positive, but at this point in time it looks very likely to be a market that stays between the 1.08 level and the 1.09 level. The 1.0850 level being the middle of the range is an area that we’ve seen a lot of action at, here on the four hour chart. And I think that continues to be the case. Ultimately, this is a market that doesn’t really have anywhere to be because both central banks of course are likely to cut between now and the end of the year.

At this point, you have to look at this through the prism of a market that just doesn’t have any really big momentum in one direction or the other. It seems like at this point in time, we are just waiting to see if the European Central Bank cuts the June meeting or if they wait a little bit longer. If they do cut and the Federal Reserve remains tight, that could put downward pressure on this pair. And then you also have to pay close attention to the geopolitical issues around the world as well, which could drive up the value of the greenback.

On the other hand, if we can break above the 1.09 level, then it’s likely that we will go to the 1.10 level above. In general, this is a market that could be choppy going forward for quite some time. That might be especially true considering we are in the summer, and it does tend to cool off a little bit as far as momentum is concerned. Not every year, but quite often it does.

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