EUR/USD Forecast – Euro All Over The Place

Euro vs US Dollar Technical Analysis

The Euro has been all over the place in the early hours on Monday as traders try to sort out what to do with all of this volatility. At this point, it looks like they are favoring the euro over the dollar just simply because it appears that the Federal Reserve has some issues on its hands. Whether or not they actually start cutting anytime soon, well that remains an open question because quite frankly, we still do have a fairly Inflationary environment in America.

So if the Fed has an issue, that may be what traders are looking at when it comes to the Euro against the Dollar. When you zoom out to longer term charts, it’s obvious that the 1.10 level is an area of significant resistance, so whether or not we can break above there remains to be seen. I suppose you could make an argument for an inverted complex head and shoulders, but it’s so choppy, I think that’s very difficult.

And then when you zoom out on even longer timeframes, such as the weekly chart, you can see that although we’ve been very bullish, we’ve also been very sideways for about two years, which is pretty typical for the Euro. So, I don’t know that we go straight up in the air from here and I in fact believe sooner or later we will probably see some exhaustion. Because of this, I don’t have any interest in trying to chase this pair. Although if it pulls back to the 1.09 level and bounces, that might be a short term entry.

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