Euro vs US Dollar Technical Analysis
The Euro pulled back yet again during the trading session in the early hours on Wednesday. And it looks like we are testing this 1.0680 area that has been support several days back to back. If we break down below here, then we could go look into the 1.06 level, but that’s an even stronger area. So, I do think the downside is somewhat limited. As far as rallies are concerned, we could go back to the 1.0750 level and really not change much. This is a market that’s just dropping back and forth and trying to sort out which direction it wants to go. If we can break above the 1.0750 level, then we could go to the 1.08 level.
This is a market that will remain very noisy to say the least, and that’s mainly because the ECB has cut rates recently and the world still is hoping that the Federal Reserve will do the same. Whether or not they will, we just don’t know, but I think you’ve got a situation where short-term trading is very possible in a back and forth manner, but I’m not looking for a big move anytime soon. And in fact, I believe most of this year is going to trade between 1.06 and 1.10, pretty much regardless of what happens unless we get some type of capitulation by the Federal Reserve, which doesn’t look like we’re anywhere near that. In other words, expect more noise and nonsensical trading in the next few weeks.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
More From FXEMPIRE:
- EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – DXY Hits Multi-Month High
- DAX Index Today: Inflation and Election Uncertainty Hit Market Sentiment
- S&P 500 Price Forecast – S&P 500 Continues to See Overall Uptrend Despite Pullback
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
