Euro to Dollar (EUR/USD) Forecast for 2023, 2024-2025 and Beyond till 2028

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EURUSD is one of the major currency pairs. It means that it’s one of the most traded pairs in Forex. However, traders around the globe try to predict its future price for more than opening successful trades. The direction of EURUSD may reflect the strength of either the EU or US economy. Moreover, the EUR to US dollar rate may reflect the overall global market sentiment.  

As the pair is widely traded, it may be hard to forecast its rate for the long term. The Euro/US dollar rate is subject to such factors as interest rate differences, inflation, jobs data, trade, and capital flows. Simultaneously, a large part of the pricing is also related to ‘event’ risks that cannot be gauged in advance. Let’s go more in-depth in this Euro to Dollar forecast and analysis of technical indicators.

The article covers the following subjects:

Major takeaways

  • In the medium term, most analysts expect the EURUSD to have grown to 1.15 by the end of 2023.
  • The rate can reach 1.296 before 2027 if an optimistic scenario plays out. It’s worth noting that the euro price may fall below $1 while correcting.
  • The currency pair’s rate drops during market instability. However, the EURUSD’s high liquidity turns it into an optimal tool for speculative trading.

EURUSD Current Rate

The current rate of the EURUSD pair is $1.05304. Below, you can see an interactive Forex chart in real-time:

Characteristic Features of the EURUSD Pair

The Euro vs Dollar pair is traded under the Forex ticker EUR/USD. It belongs to the major currency pairs (majors) and is characterized by increased liquidity. This is not surprising, as it includes two of the world’s major reserve currencies: USD and EUR. It is in the euro/dollar that the largest volume of transactions is made during daily trading in the Forex market (approximately 20% of the total volume).

The behavior of the EURUSD pair is a kind of indicator showing the comparative state of the US and EU economies. If the US economy is growing steadily, and problems arise in the EU, this might cause a EUR to US dollar fall. Conversely, if there is a decline in growth rates in the USA and the Eurozone demonstrates good performance, the EURUSD pair will grow. Let’s consider the main trading characteristics of this major pair:

  • Active trading hours — the pair is traded around the clock five days a week. It is most active during the European and American trading sessions. At this time, the largest trading volumes take place, and one can see the main movements of the EUR USD.
  • Volatility — the EUR to USD is characterized by medium volatility. During the release of important data, the pair is capable of making strong movements of 100 pips and more. But in general, if you look at the historical data, the average daily volatility of the EUR USD pair is about 80 pips.
  • Spread is one of the main advantages of this pair. Due to the highest liquidity, the spread for the EUR USD is the lowest. On popular ECN accounts, the spread is usually less than 1 pip.

The Dollar in 2023: More Predictable?

Under Joe Biden’s presidency, the US dollar fluctuates less in world markets. Financial markets noted that the new US president focused on domestic issues and engaged in constructive trade negotiations. These factors reduced the tension in the financial markets, reducing the demand for the greenback as a safe-haven currency.

Joe Biden also launched a massive US stimulus plan that helped the economy recover from the coronavirus pandemic but further widened the US budget deficit. At the latest Fed meeting, Chairman Jerome Powell said he would not raise interest rates until the end of 2023, which also impacted the greenback.

In addition, China, South Korea, and Taiwan have coped well with the pandemic and eventually resumed economic growth. It means that investors have turned to risky markets. Against the backdrop of the latest USD movements in Forex, making forecasts for tomorrow, rates, and correlations can become challenging.

According to analysts, the future of the market looks promising. The goal for many traders is a long trade, that is, a long-term purchase. The term of such a purchase can be determined depending on the popularity of the currency pair.

Technical analysis is also an important part of forecasting. Analysts and large analytics firms use various tools such as moving averages, oscillators, and pivot points to analyze past data and determine future market trends. This helps investors make informed investment and trading decisions.

Euro to dollar forecast 30 days looks promising thanks to recent moves and investments. Although Forex trading is full of risks, a thorough comparison of market characteristics and conducting analysis will help traders make profitable decisions.

EURUSD Technical Analysis

To make up a realistic euro to dollar forecast, conducting a deep technical analysis on different timeframes is necessary. Let’s start by studying the EURUSD monthly chart. The higher the market sentiment rises, the more optimistic the EURUSD outlook becomes.

To conduct an overview but very accurate technical indicators’ analysis, one should use moving averages (with periods of 20, 50, 100, and 200), oscillators (RSI, stochastic, MACD, CCI, etc.), and pivot points (classic, Fibonacci, Camarilla, Woody, etc.). These tools help us determine the trend, support and resistance levels, as well as potential overbought and oversold zones. The use of this type of analysis significantly improves currency forecasting in Forex.

After reaching 1.6 during the crisis in April 2008, a distinct downtrend (red line) began with clear corrections until 2015, when EUR USD entered a long-term channel with a lower border of 1.04 and an upper of about 1.23. This encouraged traders, and purchase investments yielded profits.

Further, after the political events of February 2022, the EUR USD quotes left the channel with a breakout of the lower border, which affected the market and the percentage of trading volumes. In 2023, the pair returned to the channel, indicating a potential increase to at least 1.25 before December.

Let’s take a look at the price chart. It shows an interesting pattern of price narrowing into a triangle until 2015 with a subsequent fall. Then the chart shows a sideways trend until 2017. Now you can see the mirror expansion from the triangle when each new correction is deeper than the previous one. This once again confirms that the probability of reaching 1.25 with a subsequent breakout to 1.30 in the next two years is very high. All these factors speak about the prospects of traders and additional opportunities for successful Forex trading and investment.

Euro/dollar weekly price forecast as of 16.10.2023

Last week, the EURUSD was corrected up to resistance (А) 1.0659 – 1.0640. The resistance has not been broken out, and the price went down to Target Zone 4, 1.0507 – 1.0488. The TZ 4 hasn’t yet been broken out, and the market could start rising from this zone this week.

If the market goes up, it could break through the high of last week and a possibility to break out resistance (A). If resistance (A) is broken out, the price will go up to resistance (В) 1.0765 – 1.0736.

It will be relevant to sell when resistance (A) or resistance (B) is reached by the price but not broken out, and a sell pattern occurs in either of the zones. The first downside target will be the low of last week, and the second one will be the low of October.

If the price goes below TZ 4 and consolidates, the next sell target in the trend will be Target Zone 5,  1.0315 – 1.0296.

EURUSD trading ideas for the week:

  1. Sell according to the pattern at resistance (А) 1.0659 – 1.0640. TakeProfit: 1.0455. StopLoss: according to the pattern rules.
  2. Sell according to the pattern at resistance (В) 1.0765 – 1.0736. TakeProfit: 1.0455. StopLoss: according to the pattern rules.

Technical analysis based on margin zones methodology is presented by an independent analyst, Alex Rodionov.

EURUSD price prediction for next three months

Let’s continue a technical analysis in the weekly chart and use the MACD indicator to get additional signals.

 As you see from the above chart, the indicator has shown a strong divergence with the price over the recent months. The MACD moving averages are above the price level. Therefore, the projected price value should rise to 1.17. A distinct support level is the lower border of the local channel – level 1.05.

The price should break out the upper channel border and go beyond in early August. The MACD line is approaching the signal line from below. The channel breakout will be confirmed if the MACD line breaks through the signal line from the bottom up. In this case, the euro to dollar will be trading in an upward momentum over the next month.

What will be the price of euro in 2023?

To make a euro to dollar forecast next 6 months, let’s use Bollinger Bands in the chart to make up a price history analysis.

After analyzing the overall market’s potential and the dynamics of changes in Bollinger Bands depending on the market situation, we can conclude that over the next 12 months, the EURUSD rate will be in the range of 1.04 – 1.24. Growth towards the upper border of the channel is likely to be very volatile. Short-term corrections will replace bullish impulses, after which the upward movement will continue. This can be tracked in the EUR to USD chart for May-November 2022, when the price broke through the lower border of the channel, went down, and returned to the channel by the end of the year.

Expect at least one strong correction in August (September) 2023. The potential target of the local bullish trend is the level of 1.25 USD, which serves as the upper border of the multi-year trading channel.

Monthly EURUSD price forecast for 2023–2024

Based on the EURUSD prediction above, I made up the expected trading ranges for each month of 2023/2024. The table below shows the projected market lows and highs for the designated period according to the eur usd forecast chart. 

Month EURUSD price
Low $ High $
August 2023 1.15 1.20
September 2023 1.19 1.21
October 2023 1.16 1.21
November 2023 1.17 1.22
December 2023 1.19 1.24
January 2024 1.17 1.22
February 2024 1.19 1.23
March 2024 1.21 1.25
April 2024 1.24 1.30
May 2024 1.27 1.31
June 2024 1.24 1.28
July 2024 1.22 1.26
August 2024 1.19 1.26
September 2024 1.17 1.21
October 2024 1.18 1.22
November 2024 1.14 1.20
December 2024 1.14 1.18

Long-term EURUSD trading plan

 When trading Forex, there are many tools that traders can use to analyze the market and make trading decisions:

  1. Charts and technical analysis. Use price charts where you can apply various indicators to analyze the market. Technical analysis will help identify support and resistance levels, as well as signals to enter and exit trades.
  2. Fundamental analysis. Follow economic news and geopolitical events, as well as study the macroeconomic indicators of the countries whose currencies you are going to trade. Fundamental analysis allows you to evaluate long-term market trends.
  3. Indicators. Various technical indicators are available in the LiteFinance online platform: moving averages, stochastics, RSI, MACD, and others. They help to identify overbought and oversold zones in the market, as well as possible trend reversals.
  4. Technical analysis patterns. Study price patterns, like zigzags, triangles, and other chart formations. They can serve as entry and exit signals and help to identify stop loss levels.
  5. Economic calendar. Keep an eye on the schedule of economic events to be aware of upcoming important news that may affect the exchange rate.

When building long-term investment plans, consider the following factors:

  1. Targets and strategy. Define trading targets, such as how much you want to earn and what style of trading you prefer (intraday, swing trading, long-term investment, etc.). Develop an appropriate trading strategy for your targets.
  2. Risks. Determine the acceptable level of risk on each position and do not exceed this amount. Use the 2% rule: don’t risk more than 2% of your deposit on one trade.
  3. Money management. Divide your capital into several parts and calculate the optimal size of each trade depending on the risk.
  4. Stop loss and take profit. Always set a stop loss and take profit for every trade. A stop loss will protect your capital from large losses, and a take profit will allow you to automatically take profits.
  5. Constant monitoring. Track the execution of your trading plan, and monitor market changes and analytical forecasts. If the situation changes, make adjustments to your strategy.

Trading psychology. Focus on controlling your emotions, and don’t make haste decisions out of fear or greed. Remember that a long-term trading plan requires discipline and patience. A long-term trading strategy should be based on data analysis, not random decisions. Each position should be well thought out and aligned with your targets and your strategy.

Follow your risk management rules, and take care of yourself and your money! 

Analytical Agencies’ EURUSD Forecast for the Rest of 2023

EUR USD has gained a lot from the beginning of the year to late July. Will the bulls dominate further?

Expert forecasts by Bloomberg, Morgan Stanley, Bank of America, Moneycorp, and others provide different views on the EURUSD future rate. They take into account the current market situation and predict various price movement scenarios.

Bloomberg

According to Bloomberg’s euro exchange rates forecast, the euro/dollar will reach 1.15 in the third quarter and up to 1.18 in the fourth, according to the most optimistic forecasts for the rest of 2023. 

Morgan Stanley

Currently, foreign investors have shown strong demand for US dollar-denominated assets due to their high yields and the strong and liquid capital markets in the US economy. Thus, we expect the greenback to strengthen further through the end of the year as sluggish growth and skewed downside economic risks reinforce investor demand for carry trades and safe-haven assets. According to a new EURUSD prediction by Morgan Stanley, the price will be 1.15 by the end of the year, which is a revision of the previous forecast of 1.08.

Bank of America

Analysts at Bank of America (BoA) are more optimistic and believe that the euro will strengthen against the greenback in 2023. Economists expected EURUSD to strengthen to 1.10 by the end of 2023. EUR USD is set to reach 1.15 by the end of 2024. The banknotes: “The USD is historically overvalued, and we would expect it to weaken in the medium-term, but the path is uncertain and subject to many risks.”

Deutsche Bank

The US dollar will weaken in 2024 and 2025. The EURUSD forecast is 1.15 by the end of 2023, and it is “quite possible” to rise to 1.20.

Investing

What some Investing company analysts say is that current forecasts suggest a slowdown in US inflation from 4% to 3.1% in annual terms. If the predictions come true, the Fed will get even closer to the 2% inflation target, which will reduce the likelihood of two more rate hikes before the end of this year. In such a scenario, the greenback risks coming under pressure, allowing the euro to continue its recovery and exceed 1.1100.

Trading Economics

According to global macro models and expectations of analysts at Trading Economics, the exchange rate euro to dollar is expected to trade at 1.11 by the end of this quarter. Looking ahead, experts estimate that in 12 months, it will be trading at 1.05.

Long Forecast

The price is expected to rise to 1.161 by August. However, according to experts, by the end of the year, the rate will drop to the value of 1.077, which has been repeatedly tested and broken out in the historical perspective since 1986.

Month Open Low-High Close
August 1.157 1.157–1.209 1.191
September 1.191 1.191–1.234 1.216
October 1.216 1.162–1.216 1.180
November 1.180 1.180–1.217 1.199
December 1.199 1.199–1.247 1.229

PandaForecast.com

PandaForecast.com experts quite boldly predict fluctuations in the exchange rate for the remaining half of the year. So, in their opinion, the euro/dollar (EUR / USD) rate will remain at 1.1229 by the beginning of August and will exceed the level of 1.1401 later in 2023.

Month Average target Pessimistic forecast Optimistic forecast Volatility, %
August 1.0835 1.0744 1.1095 3.16
September 1.0794 1.0672 1.1021 3.17
October 1.0581 1.0412 1.0830 3.86
November 1.0261 0.9942 1.0485 5.18
December 1.0011 0.9889 1.0175 2.81

Moneycorp

Below you can find EUR USD forecast by Moneycorp for the second half of 2023 and early 2024 by leading analytical institutions.

  Q2 2023 Q3 2023 Q4 2023 Q1 2024
Amdocs Development Ltd 05/03/23 1.1 1.12 1.13
Axis Bank 05/02/23 1.05 1.1 1.1 1.09
Landesbank Baden-Wuerttemberg 05/02/23 1.08 1.09 1.1 1.1
Swedbank 05/02/23 1.12 1.13 1.14 1.14
TD Securities 05/02/23 1.11 1.13 1.14 1.15
Mizuho Bank 05/01/23 1.09 1.11 1.12 1.12
Prestige Economics LLC 05/01/23 1.09 1.11 1.13 1.15
Bank Julius Baer 04/28/23 1.11 1.13 1.14 1.15
Nomura Bank International 04/28/23 1.14 1.15 1.16 1.17
Banco Santander 04/28/23 1.07 1.07 1.09 1.1
Banco Bilbao Vizcaya Argentaria 04/27/23 1.09 1.1 1.13 1.13
ING Financial Markets 04/26/23 1.1 1.12 1.15 1.15
Skandinaviska Enskilda Banken 04/26/23 1.11 1.08 1.1 1.11
Monex USA Corp 04/26/23 1.08 1.09 1.1 1.11
ABN Amro 04/25/23 1.08 1.09 1.1 1.12
Wells Fargo 04/25/23 1.1 1.12 1.14 1.16
DZ Bank 04/24/23 1.1 1.11 1.13 1.15
Maybank Singapore 04/21/23 1.1 1.11 1.12 1.13
Oversea-Chinese Banking Corp 04/21/23 1.1 1.11 1.12 1.12
Citigroup 04/19/23 1.14 1.15 1.16 1.17
Danske Bank 04/19/23 1.09 1.07 1.05 1.03

EURUSD Forecast for 2024

Forecasts for 2024 vary. Most experts believe that the EUR to USD will exit the current price channel and move into a new one with the lower border at 1.15 and the upper at 1.30 and will test many highs of previous years; however, others, on the contrary, believe that the euro/dollar will leave the current comfortable state with breaking the value below 1 USD per EUR.

Long Forecast

The euro versus the dollar is expected to trade in a bullish market trend in the future 2024. EURUSD will be able to reach the highs of previous years, 2014, 2016, and 2018.

Month Open Low-High Close
2024
January 1.229 1.179–1.229 1.197
February 1.197 1.196–1.232 1.214
March 1.214 1.214–1.267 1.248
April 1.248 1.248–1.304 1.285
May 1.285 1.277–1.315 1.296
June 1.296 1.244–1.296 1.263
July 1.263 1.223–1.263 1.242
August 1.242 1.193–1.242 1.211
September 1.211 1.164–1.211 1.182
October 1.182 1.182–1.221 1.203
November 1.203 1.149–1.203 1.167
December 1.167 1.134–1.168 1.151

PandaForecast.com

 PandaForecast.com analysts predict a sharp downtrend until the middle of the year, followed by a reversal and a return to the levels of its beginning.

Month Average target Pessimistic forecast Optimistic forecast Volatility, %
2024
January 1.0226 0.9908 1.0428 4.98%
February 1.0372 1.0272 1.0651 3.56%
March 1.0276 1.0073 1.0449 3.59%
April 1.0237 1.0121 1.0478 3.41%
May 1.0044 0.9938 1.0196 2.52%
June 0.9959 0.975 1.021 4.51%
July 0.9796 0.966 0.9969 3.10%
August 1.0051 0.9874 1.0267 3.82%
September 1.0452 1.0105 1.0623 4.88%
October 1.0277 1.0182 1.0462 2.68%
November 1.0449 1.0147 1.0585 4.15%
December 1.0735 1.059 1.0901 2.85%

EURUSD Forecast for 2025

EUR USD will not reach new highs in 2025. Still, the pair might be trading at fairly high levels.

Long Forecast

In 2025, the EURUSD price rises above $1, according to the currencies forecasting. The pair will open the year at an average of 1.15, followed by a gradual decline to 1.05 by the end of the year.

Month Open Low-High Close
2025
January 1.151 1.133–1.167 1.15
February 1.15 1.119–1.153 1.136
March 1.136 1.124–1.158 1.141
April 1.141 1.100–1.141 1.117
May 1.117 1.098–1.132 1.115
June 1.115 1.077–1.115 1.093
July 1.093 1.072–1.104 1.088
August 1.088 1.073–1.105 1.089
September 1.089 1.040–1.089 1.056
October 1.056 1.056–1.090 1.074
November 1.074 1.074–1.118 1.101
December 1.101 1.053–1.101 1.069

PandaForecast.com

Analysts at PandaForecast.com expect the euro-dollar to start the year with rather unpromising readings close to parity. After that, an upward euro to usd trend may begin at the end of the year at 1.13.

Month Average target Pessimistic forecast Optimistic forecast Volatility, %
2025
January 1.0766 1.0536 1.111 5.17%
February 1.0667 1.0331 1.1007 6.15%
March 1.0743 1.04 1.1041 5.80%
April 1.0621 1.0443 1.0956 4.68%
May 1.0625 1.0291 1.0808 4.79%
June 1.0219 1.0108 1.0425 3.05%
July 1.0567 1.0478 1.0918 4.02%
August 1.098 1.0818 1.1187 3.30%
September 1.0851 1.0527 1.1215 6.14%
October 1.1243 1.0969 1.1408 3.85%
November 1.1087 1.0821 1.1292 4.17%
December 1.1017 1.0836 1.1318 4.25%

Long-Term Euro to USD Forecast 2026–2027

Any long-term projection is not reliable. Market conditions change daily. However, we found some EUR USD forecast data provided by analytical agencies for 2026 and the beginning of 2027.

Long Forecast

The Economy Forecast Agency experts are quite optimistic about EURUSD for the next few years. In 2026, the price might exceed $1.16, and in 2027, the pair will be quoted within the average values of 2024-2026.

Month Open Low–High Close
2026
January 1.077 1.056–1.088 1.072
February 1.072 1.048–1.080 1.064
March 1.064 1.064–1.106 1.09
April 1.09 1.090–1.135 1.118
May 1.118 1.093–1.127 1.11
June 1.11 1.073–1.110 1.089
July 1.089 1.086–1.120 1.103
August 1.103 1.103–1.153 1.136
September 1.136 1.132–1.166 1.149
October 1.149 1.148–1.182 1.165
November 1.165 1.139–1.173 1.156
December 1.156 1.140–1.174 1.157
2027
January 1.157 1.133–1.167 1.15
February 1.15 1.121–1.155 1.138
March 1.138 1.138–1.175 1.158
April 1.158 1.127–1.161 1.144
May 1.144 1.144–1.183 1.166
June 1.166 1.143–1.177 1.16
July 1.16 1.134–1.168 1.151
August 1.151 1.105–1.151 1.122

PandaForecast.com

The source sees a continuation of the bullish trend in 2026. Small corrections are expected in 2027.

Month Average target Pessimistic forecast Optimistic forecast Volatility, %
2026
January 1.1899 1.1669 1.2174 4.15%
February 1.1489 1.1383 1.1856 3.99%
March 1.1388 1.1154 1.1551 3.44%
April 1.1661 1.1274 1.2047 6.42%
May 1.1553 1.1354 1.1689 2.86%
June 1.1548 1.1417 1.1897 4.04%
July 1.1538 1.1335 1.1659 2.78%
August 1.1606 1.1401 1.1825 3.59%
September 1.1601 1.1221 1.1874 5.50%
October 1.1528 1.1238 1.1712 4.05%
November 1.1078 1.0785 1.1324 4.77%
December 1.0962 1.081 1.1067 2.33%
2027
January 1.0971 1.0819 1.1197 3.37%
February 1.0975 1.0796 1.1104 2.78%
March 1.1381 1.1228 1.1682 3.89%
April 1.1539 1.1243 1.1834 5.00%
May 1.1296 1.1111 1.151 3.46%
June 1.1524 1.1374 1.1626 2.17%
July 1.1345 1.1054 1.1688 5.42%
August 1.1155 1.0869 1.152 5.65%
September 1.1506 1.1327 1.1781 3.86%
October 1.1269 1.1018 1.1529 4.43%
November 1.0943 1.0772 1.1172 3.58%
December 1.0736 1.0407 1.1074 6.03%

Which Factors Affect the Quotes of the EURUSD Currency Pair?

The EURUSD rate is the ratio of the currencies of the two largest economies in the world – the EU and the USA. Therefore, important economic and political news from the EU and the US directly affects the euro-dollar rate. These factors of influence are called fundamental; in addition to them, there are also technical ones. Let’s consider both those and others in more detail:

Fundamental Factors

There are several important economic indicators for the US and EU. The most significant factors affecting the price include the following:

  • Change in interest rates of the ECB and the Fed.
  • Unemployment Rate.
  • Data on jobs created in the US (Nonfarm Payrolls).
  • Growth rate of GDP.
  • Inflation indices (CPI, PPI).
  • Industrial production (Industrial Production index).
  • Retail Sales.
  • Trade balance.
  • Consumer Confidence Index.
  • Indices of business sentiment (ISM, IFO).
  • Speeches by top officials – press conferences of the heads of the ECB and the Fed, speeches, and comments by leading politicians from the EU and the United States.
  • Political events – various reshuffles in the government, elections, popular unrest, internal political instability (e.g., Brexit).
  • Force majeure – extraordinary events, natural disasters, man-made disasters, terrorist attacks, epidemics.

Technical Factors

  • Active trend — an essential technical factor for trading is the presence of an active trend. In an uptrend, purchases are preferable; in a downtrend, sales are recommended. In a sideways trend (range), trading in both directions from the boundaries of the price range is appropriate.
  • Important support and resistance levels are historical highs and lows on the price chart. These are important price reference points for analyzing and predicting the future of euro vs dollar.
  • Price patterns various patterns of continuation or reversal of a trend from classical technical analysis, candlestick patterns, and Price Action patterns.

For a risk aversion strategy, it is necessary to use a combination of technical and fundamental factors when making decisions when trading the euro dollar pair.

History of the EURUSD Pair

The Euro (EUR) is a fairly young currency that was born in 1999. The single European currency has replaced a whole galaxy of the EU countries’ national currencies: The Deutsche mark, the French franc, the Italian lira, and others. Therefore, one of the euro’s features is its susceptibility to macroeconomic statistics of the entire Eurozone and individual EU countries’ indicators.

The European currency was officially introduced into non-cash circulation on January 1, 1999, and on January 1, 2002, banknotes and coins were introduced into cash circulation. In terms of the volume of use in international payments, the euro is second only to the US dollar. It is also the second most popular (after USD) reserve world currency. At the time of the official start of trading, the EURUSD rate was in the 1.1800 area.

Since the beginning of trading in 1999, the EUR USD pair has undergone significant changes. In the first two years, the euro’s prospects were still vague, and the quotation was declining, reaching a minimum of around 0.8200. The pair then rallied for seven years, reaching an all-time high of 1.6039 in 2008. In subsequent years, due to the banking crisis’s influence and various problems in the Eurozone, the pair was in a dramatic bearish trend until April 2015. After that, the pair started recovering.

In terms of market sentiment, 2020 was a very illustrative year. During the first coronavirus wave in March, the market was unpleasantly surprised by the severity, magnitude, and impact of the coronavirus pandemic, causing investors to flee to the dollar as a safe haven. Later a similar revision took place in the opposite direction. When pharmaceutical company Pfizer released positive vaccine news in early November, the dollar fell in value due to the disappearance of the need for a safe haven. 

In both cases, the market reaction was apparent, but that is not always the case. For example, the announced financial support packages from the European Central Bank (ECB) in 2022. Whereas in the past, the availability of more euros often caused downward pressure on the euro, such packages resulted in an upward price movement. According to investors, the ECB showed it was doing everything it could to prevent companies from collapsing and safeguard employees’ jobs.

Precisely because of the occurrence of unforeseen market conditions and the sometimes-surprising market reaction to them, our starting point is that you should always take price estimates with a grain. For example, at the end of 2018, many market parties anticipated a weaker dollar, but in 2019 the dollar picked up with the US-Chinese trade war as a catalyst. That created a lot of uncertainty, causing capital to flow to safe havens like the dollar. Such events are difficult to envision, and this was especially true in recent years with a fickle character like Donald Trump at the helm in the United States.

The pair was quite strong until April 2021. However, a new downtrend took place after and lasted until October 2022. If you check the historical price actions, you will notice that the pair simply follows traditional trends.

Is EURUSD Still a Good Investment?

Due to the huge liquidity in the market and the predictability of the EURUSD price changes, investors can confidently consider this tool for trading and speculation. As of early August 2023, the market is in a solid bullish trend, and analysts expect the EURUSD to rise this year. The forecast for 2023 provided by Longforecast confirms the demand for the euro-dollar pair and points to a possible strengthening of the euro versus the US dollar.

Month Open Low–High Close
2023
July 1.091 1.086–1.174 1.157
August 1.157 1.157–1.209 1.191
September 1.191 1.191–1.234 1.216
October 1.216 1.162–1.216 1.180
November 1.180 1.180–1.217 1.199
December 1.199 1.199–1.247 1.229

Source: Longforecast.com

But what does the EUR USD forecast predict for the distant future? It’s important to remember that any long-term predictions, even the EURUSD forecast or any other majors, are too unreliable to believe in. Too many factors may affect the rate of the currency pair, and it’s best to be up-to-date with what’s happening in the global arena in order to make realistic and reliable predictions.

If you do decide that trading this currency pair is something for you, and you believe in the future of the Euro vs. US Dollar pair, first, you need to decide on a suitable trading method for you and work it out first on a demo account, and then on a real account. A great reason to create a free demo account on LiteFinance! LiteFinance has fact-checked information and a user-friendly platform with an outlook for novices as well as experienced traders and investors.

By the time of transactions, you can trade as follows:

  • Intraday — trading without carrying over the position to the next day. It is characterized by narrow stop-loss and take-profit orders, requiring a trader to spend a lot of time in front of a monitor and strict discipline, and is available even with a small deposit.
  • Medium-term (swing trading) — the duration of transactions from several hours to two-three days. The medium-term trading implies wider stop-loss and take-profit orders, takes less time, and requires a more substantial trading account size.
  • Long-term — trades are held for several weeks or even for months. This trading style is more suitable for investors.

Price chart of EURUSD in real time mode

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

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