Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

EUR/USD Forecast: Continues to be in Flux

The prevalent unpredictability of the market, at this time, is due to the ongoing struggle to decipher whether the euro will continue its recovery or break down further. 

  • The EUR/USD found a semblance of stability on Tuesday, exhibiting a recovery after an initial decline.
  • This mild comeback, however, underscores a pervasive trend of uncertainty in the market.
  • The day's hesitation was characterized by the release of weaker-than-expected European Purchasing Managers' Index (PMI) numbers, causing fluctuations that further exacerbated the noisy behavior of the market.

This uncertainty might find a counterbalance in the upcoming U.S. numbers. If these figures come out lower than anticipated, the market could find itself in a “no-fault, no foul” situation, with both sides of the Atlantic sharing a similar economic position. Despite the current ambiguity, a glance at the existing chart reveals that a modicum of support seems to be holding near the 1.0750 level.

Should we witness a dip below the 1.0750 level, the possibility arises of a descent to the 200-Day EMA, approximately at the 1.0680 level, which is currently on an incline. A further drop from there could potentially bring us to the 1.05 mark. This zone has traditionally acted as a significant support area.

Expect a lot of Erratic Short-term Behavior

The prevalent unpredictability of the market, at this time, is due to the ongoing struggle to decipher whether the euro will continue its recovery or break down further. Despite the ambiguity, one thing is clear: the market is expected to maintain its noisy disposition as it grapples with this uncertainty. Key to the market's trajectory will be the evolving risk appetite of global traders.

A potential turnaround in the market could occur if the 50-Day EMA is overtaken on the higher side. This scenario could pave the way for an upward trajectory towards the 1.11 level. If this level is surpassed, the market may then transition to a “buy-and-hold” phase. However, there is a lot of work to be done before that happens. In the meantime, expect a lot of erratic short-term behavior out of this pair.

However, it's prudent to remember that this market likely has turbulent times ahead. The anticipated volatility calls for an added measure of caution for traders. The imminent future promises a fair share of choppy behavior, requiring patience and vigilance before the market’s trajectory becomes clear. After all, the one thing that we have had an abundance of lately has been indecision. I am not sure what it will take to relieve that, and the summer is typically a slow time of year regardless.

EUR/USDReady to trade our Forex daily analysis and predictions? Here are the best regulated trading brokers to choose from.

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.


Most Visited Forex Broker Reviews