EUR/USD Forecast – Euro Continues to Bounce Around

Euro vs US Dollar Technical Analysis

The Euro has been back and forth during the last several trading sessions, but Monday has been a little bit negative for the Euro. That being said, I don’t necessarily believe that we are making some great statements here. I think we just continue to chop around this area right around the 1.0850 level. Underneath the 1.08 level is a major support level, while the 1.09 level above is a major resistance barrier. All things being equal, this is a market that I think continues to bounce from one big figure to another.

Both central banks are likely to cut between now and the end of the year, so I think you’ve got a situation here where there’s no real clear winner. At this point, I think if you are a range bound trader, this might be a nice buying opportunity as we approach the 1.08 level, but you obviously would have to see some type of bounce. If we were to break down below 1.08, then we go down to the 1.07 level.

Ultimately, this is a market that I think traders continue to see a lot of lackluster performance, but it can also be used as a gauge as to how the US dollar might behave in other markets. So certainly, a chart worth watching. I use this pair often to determine what to do with other pairs involving the EUR or the USD that are more active. In other words, this is one of the most important charts that a currency trader can pay attention to, regardless of the pairs that you are looking at.

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