EUR/USD Forecast – Euro Continues to Bounce from Big Figure to Big Figure

Euro vs US Dollar Technical Analysis

The euro has been hanging around the 1.09 level, an area that is a large, round, psychologically significant finger and an area that we have seen play out as a major resistance barrier recently. With that being said, the market is likely to continue to be noisy, but in general, the market breaking above the 1.0925 level opens up the possibility of a move to the 1.10 level.

On the other hand, if we break down below the 1.0880 level, then I think we could perhaps drop down to the 1.08 level. Keep in mind that the euro is just simply the anti-dollar, and this is a play on the Federal Reserve at this point. But we do have an ECB rate decision and statement coming soon. So that is something that you have to be aware of in the background. All things being equal I think this is a pair that will just jump from one large figure to the next. And your job as a trader is just to see which way it breaks.

The last several days have been very noisy and choppy, but that would be expected at a major resistance barrier. And now we just wait for the market to tell us what to do and follow. The interest rate differential was still favoring the Americans for now, but it’s not a massive one. It’s not like one that you see in the carry trade type of situation. You have against the Japanese yen or the Swiss franc, all things being equal, this is a market that I think remains neutral but does offer short term trading opportunities if you look for little breaks towards the next big figure.

For a look at all of today’s economic events, check out our economic calendar.