- You can see the Euro rallied quite significantly during the trading session on Wednesday, as we have now broken above the 1.09 level.
- That being said, this is a market that I think will continue to be very noisy and trade in an overall range.
The 1.10 level above is a significant resistance barrier and an area that has proven itself to be important multiple times. Even if we break above there, I think there's probably going to be a significant amount of resistance near the 1.11 level as well. Clearing that opens up the possibility of a move to the 1.125 zero level, which was a swing high, and I think could be the high for the foreseeable future.
If We Fall…
If we turn around and pull back from here, then the 200-day EMA would offer significant support right along with the 1.0750 level, an area that has been important multiple times. If we were to break down below that level, then it's likely that the 1.06 level is targeted. Either way, a lot of this is going to come down to the idea of interest rates, and interest rates are falling in America during the trading session, so it does make a certain amount of sense that the euro is one of the big bit of factors.
Expect a lot of noisy trading. At this point, I think we are heading into a lot of order flows, so it'll be interesting to see whether or not we can continue to shoot straight up in the air. I anticipate we will continue to hover around the 50-day EMA, so it'll be interesting to see how this plays out.
There are a lot of questions out there right now as to what central banks around the world are going to do. After all, the Federal Reserve is expected to cut rates throughout 2024, but the European Central Bank may have to do the same. So that's why I think we kind of knock around for a while. I believe that’s going to be the case for a lot of currency pairs around the world, and the EUR/USD pair is just simply going to be a symbol of that indecision worldwide. With this, I remain more of a swing trader in a range between the 1.0750 level on the bottom and the 1.10 level on the top.
Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.