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

Euro vs US Dollar Technical Analysis

The Euro continues to hang around the large figures on the chart as early in the morning on Friday, we have reached the 1.10 level. The 1.10 level of course is a large round psychologically significant figure that a lot of people will be looking at as a guideline. The pair has sliced through it both times that we have approached here recently.

So, I do think that it’s likely that although it’ll cause a bit of a reaction, I don’t know that it’s going to be the “be all end all” of support or resistance. It’s more or less just a place where people are willing to change their positions. If we can break higher, the 1.1050 level would be the initial target. And then after that, you would have to move to the 1.11 level. In general, this is a market that continues to go from one big figure to the next. So, for a breakdown below the 1.0950 level, then it’s likely that we will go looking to the 1.09 level.

In general, I think this is a scenario where traders will continue to look at this through the prism of which currency or, better put, central bank is going to be loosening or tightening. In this environment. It looks a lot like a market that is betting on both central banks to cut. So, while the Federal Reserve really hasn’t done that yet, it certainly seems as if they will be doing it in September, at the next meeting. And at the same time, the ECB has already started. The question of course at this point is, will they both continue? As long as that’s going to be the case, I expect to see a lot of choppiness.

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