EUR/USD Forecast – Euro Continues to Chop Back And Forth (2024)

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Euro vs US Dollar Technical Analysis

The euro had initially fallen during the trading session on Thursday, but then turned around to show signs of life. Underneath, we have the 1.08 level offering a significant amount of support, which previously had been resistance, so it makes a certain amount of sense that traders look at the area as a market memory just waiting to happen.

And it has in fact offered support. So, with this being the case, the market is going back and forth between the 1.08 level at the bottom and the 1.09 level at the top, as we continue to consolidate overall. The euro typically will just go back and forth in 100 point ranges, and that’s exactly what’s going on right here.

I don’t necessarily trade this market very often. I prefer to use it as an idea as to where the US dollar might be going. So, for example, if I see in this case that the U.S. dollar is losing strength, then I start to look if there are ways to short it against other currencies that might have a little bit more momentum and of course vice versa.

As I look at the euro in general, I do think that we are linked right in the middle of the yearly range, or at least what I think will end up being the yearly range, and therefore it’s a pretty neutral and ambivalent currency pair. I wouldn’t look to trade this market for anything more than a minor move, and am not expecting much at this point.

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