EUR/USD Forecast – Euro Continues to Bounce Around Rudderless

Euro vs US Dollar Technical Analysis

The Euro has been bouncing around just below the 1.10 level all week, and I think it’s probably only a matter of time before we have to break above there and go higher. On the other hand, if we were to break down below the 1.0950 level, then the market could open up and move down to the 1.09 level. This is a pair that is typically very choppy and very noisy.

That, I think, will continue as we are certainly taking a look at the currency pair through the eyes of traders that understand there are two central banks involved here that are both looking to loosen monetary policy. So, I do think you continue to get a lot of this back and forth nonsense. That being said, from a longer term perspective, it looks like the 1.12 level continues to be important as a major top. And I do think that the 1.10 level and the 1.08 level both are important as well.

So, I think we’re just banging around between these three major levels. In general, this is a situation where I think a lot of people are just going to hang about and perhaps use this as an indicator as to where the US dollar is going to go more than anything else. It’s essentially a proxy for the US dollar index, and can be used to see where the US dollar might go overall in the markets, which will make a lot of sense to pay attention to.

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