EUR/USD Forex Trading Report | Technical Analysis | Updated for 12.26.2023 (2024)

FAQs

What is the EUR USD prediction for forex? ›

EUR/USD Weekly Outlook

Upside should be limited by 1.0723 support turned resistance. Break of 1.0601 will resume the fall from 1.1138t o 100% projection of 1.1138 to 1.0694 from 1.0980 at 1.0536 next. In the bigger picture, price actions from 1.1274 are viewed as a corrective pattern to rise from 0.9534 (2022 low).

The EUR/USD's bullish momentum may be enough to ensure it ends 2023 above $1.10 in 2023. Ongoing Fed rate cut expectations, positive risk appetite and hawkish ECB could support the EUR/USD outlook in early parts of 2024.

EUR/USD Technical Overview

On the downside, 1.0750 (200-period Simple Moving Average (SMA), Fibonacci 38.2% retracement of the latest downtrend) aligns as key support before 1.0720 (50-period SMA) and 1.0700 (Fibonacci 23.6% retracement).

The euro/dollar rate is expected to be at the upper boundary (1.10300) of its sideways trend. EUR/USD Forecast: the price will reach local highs at the end of March or at the beginning of April and then attempt to break out the resistance line. The RSI is currently above 50, the level it has approached from below.

EUR/USD Forecast: Bulls timidly adding, aim for 1.0900

The EUR/USD pair posts modest gains on Monday, trading in the 1.0780 price zone ahead of Wall Street's opening.

The most opportune time for trading EUR/USD in EST aligns with the overlapping sessions of major financial markets. The overlap between the London and New York sessions, from 8:00 AM to 12:00 PM EST, tends to be the most active period.

Bank of America and ING

On the other hand, Bank of America (BoA) expects a still relatively strong euro in 2024. The exchange rate estimate is 1.10 and 1.15 in 2024. Several elements could alter these assumptions, but the main one is related to interest rates.

In 2023, as interest rates appeared to peak in the U.S. but were still rising in other countries, more money flowed out of the U.S. This led to a moderate decline in the dollar's value versus the euro.

Credit Agricole forecasts only very gradual Euro gains; “We expect the Fed to cut rates in 2024 and 2025. Yet, slow growth outside the US and other major central banks starting easing cycles as well will limit the USD fall. EUR-USD will likely rise to 1.13 at end-2024 and will probably hit 1.15 only in late 2025.”

EUR/USD is trading down a full percentage point in the upper 1.0700s, after the release of the US Consumer Price Index (CPI) data, on Wednesday. The data showed warmer-than-expected inflation in March and lowers the probability that the US Federal Reserve (Fed) will implement an early interest-rate cut.

What affects EUR USD in forex? ›

The EUR/USD pair represents the number of US dollars required to buy a single euro. It is affected by government policies and the economics of demand and supply in currency markets for the pair.

Use moving averages in trading the EURUSD to determine the current market state. If the MAs often cross the EURUSD chart, the market is trading flat. If the price action chart is above the EMA, the trend is bullish; if the price is below the indicator, the underlying trend is bearish.

1. Kuwaiti dinar. Known as the strongest currency in the world, the Kuwaiti dinar or KWD was introduced in 1960 and was initially equivalent to one pound sterling.

A collapsed euro would likely compromise the so-called “Schengen Area,” named after the 1985 Schengen Agreement. Under this agreement, 26 separate European countries agreed to allow free movement of people, goods, services, and capital within the borders of the eurozone.

Bank of America and ING

On the other hand, Bank of America (BoA) expects a still relatively strong euro in 2024. The exchange rate estimate is 1.10 and 1.15 in 2024. Several elements could alter these assumptions, but the main one is related to interest rates.