EUR/USD Forecast – Euro Continues to Attempt a Short Term Recovery

Euro vs US Dollar Technical Analysis

The Euro rallied a bit during the early hours on Tuesday as we bounced from the large round figure of 1.08. When I look at the chart, it’s very easy to see that we have simply gone from figure to another and therefore I think you’ve got a scenario where you are just sideways trading and trying to sort out whether or not we have anywhere to be.

At this point we are closer to support than we are to resistance so you would have to assume there’s a little bit of buying pressure just waiting to happen, but we also have a Federal Reserve meeting in the middle of the week that will have a major input on what happens next with the US dollar next.

We will continue to see a lot of noisy sideways action overall. But if we were to get a daily close below the 1.08 level, it could open up selling down to the 1.07 level. On the upside, I think the 1.09 level will be difficult to overcome. But if we do, we could see a little bit more momentum to the upside. In general, this is a very neutral pair right now and may remain so through the rest of the summer as we try to sort out what each central bank is actually going to be doing. At this point, they are “as clear as mud” with their interest rate policies. Quite frankly, they don’t know what they are doing at this point.

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