Start Trading Now Get Started
Affiliate Disclosure
Affiliate Disclosure DailyForex.com 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: Euro Looks Somewhat Stagnant

By Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
  • It’s obvious that the euro is a little overextended at the moment, and I think it makes quite a bit of sense that we would continue to see a little bit of hesitation.
  • After all, the 1.12 level above is an area that’s been an important resistance more than once, and I think it makes a certain amount of sense that we will continue to pay close attention to it.

EUR/USD Forecast Today - 28/08: Euro Looks Stagnant (Chart)

Furthermore, you need to keep in mind that the European Central Bank is also loose with its monetary policy, so even if the Federal Reserve does start cutting rates, which most people think that they will in September, the reality is that we still have a couple of central banks that are both soft and weak. If that is going to be the case, then you’ve got a scenario where this is a market that will more likely than not be looking for some type of range to trade in.

Top Forex Brokers

1
Get Started 74% of retail CFD accounts lose money Read Review

Technical Analysis

Do not get me wrong, the technical analysis for the EUR/USD pair at the moment is rather bullish. We have had the “golden cross” when the 50-Day EMA crosses above the 200-Day EMA indicator, and that of course has longer-term traders excited. However, the reality is that there is a ton of resistance between the 1.12 level in the 1.1250 level above. Furthermore, we are about 6 country miles from the 50-Day EMA, so we are most certainly overstretched by applying the “eye test.”

If we do pull back from here, I would anticipate that there will probably be a certain amount of value hunters out there looking to pick up “cheap euros.” However, I still have to question how much more upside we have in this type of environment, due to the fact that we have gotten so far in such a short amount of time. Ultimately, I think this is a scenario where the markets are going to try to find their “equilibrium”, and I don’t think we have found it quite yet.

Ready to trade our Forex daily analysis and predictions? Here are the best European brokers to choose from. 

Christopher Lewis
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.

Most Visited Forex Broker Reviews