EUR/USD Weekly Price Forecast – Euro Continues to Put Traders to Sleep

Euro vs US Dollar Weekly Technical Analysis

The euro had initially tried to rally during the trading week, but the 1.09 level offered a little bit of resistance to send the market lower again. And at this point in time, the market then fell towards the 1.08 level before bouncing again. All things being equal, this is a market that I think will continue to be one that’s very noisy and therefore I think it remains rangebound.

It’s very difficult to get overly excited in one direction or the other. And with that being the case, if we can break above the top of the shooting star from the previous week, that could show a shift in attitude, perhaps allowing the euro to travel to the 1.10 level on a break down below the 1.08 level, then I think the euro goes looking to the 1.07 level.

This is a typically quiet time of year anyway, and this of course is a very rangebound pair and has been for two years. I don’t see that changing any time soon, as both central banks look to be likely to cut later this year. And then in that environment, it’s basically a race to the bottom as far as interest rates are concerned, and therefore one currency isn’t going to stand out particularly well against another. Because of this, I look at this as a short term trading environment only, and therefore I am not looking to take longer-term trades at the moment.

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