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

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth during the course of the trading session on Monday and as we drift into the North American session, things will definitely stop as the US and Canada both are celebrating Labor Day today. With that being the case, the 1.11 level above is an area that I think is going to be a little bit of a barrier. If we can break above that, then we might revisit the 1.12 level. On a drift lower, then we get the 1.10 level offering support as it is a large round psychologically significant figure.

The one thing that I do see on the charts with the Euro lately is the fact that it is just simply going from one large round figure to another. I don’t know if that’s going to change anytime soon because quite frankly, this is a scenario where traders are betting on central banks cutting rates and both are likely to do so multiple times over the next year. So, it’s really a race to the bottom as has been the case for some time, trying to inflate debt away.

So, with that being said, this is a market that I still remain very neutral on, but short-term traders may find some opportunities bouncing from one handle to the next. Currently, we are sitting right in the middle of two large round figures, and this means that a lot of traders are probably just waiting for the next move to put money back into this pair.

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