EUR/USD Weekly Price Forecast – Euro Continues to Bounce Around

Euro vs US Dollar Weekly Technical Analysis

The euro has been rather positive during the course of the trading week as people read a lot into a report that Jerome Powell had given and the ECB. They also have read a lot into what he has suggested that the United States may be heading in the right direction. So again, we start to argue about whether or not the Federal Reserve could cut rates between now and the end of the year. With that, it gives a little bit of life to the Euro. But really, at this point in time, I think it’s somewhat lackluster in its performance.

And I think that will continue to be the case. On the weekly chart, if you look at every 100 points, you can see there’s a reaction. And we have been basically doing the same thing since the beginning of autumn in 2022. I don’t think this market’s really ready to go anywhere. So, a longer term trader is probably going to use this as a secondary indicator as to what to do with the US dollar against any other currency.

As far as a longer term trade is concerned, the interest rate differential isn’t exactly astronomical, so it’s not even like it’s a good carry trade. I’m not a big fan of trading this market from a longer term standpoint, and I recognize that it is basically the realm of high frequency traders. With that, I remain very neutral on this pair, and I think the chart shows that the definitely is the case.

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