EUR/USD Forecast – Euro Continues to Find Buyers on Dips

Euro vs US Dollar Technical Analysis

The Euro has rallied quite a bit after PMI numbers have come out for France, Germany, the EU, the UK, and the United States. With all of that being said, it looks like right now the mixed emotions will probably continue. While we are seeing weakness in Europe, there is a bit of a shock when it comes to the United States as the manufacturing PMI numbers came out much weaker than anticipated, but at the same time, the services numbers came out a little higher. So, it’s a mixed bag at this juncture. The market is still trying to figure out what it wants to do longer-term.

At this point, it’s probably going to be a scenario where we are going to try to work our way towards the 1.09 level, which should not be a huge surprise due to the fact that we go back and forth from one big figure to the next in this pair quite often. So, it all lines up with what we had seen previously. For those of you who are more inclined to trade Fibonacci levels and retracement levels you can see that we have just bounced from the 38.2% Fibonacci retracement level.

So that could give another reason for support. Either way, it looks like the momentum is shifting to the upside. But remember, when you’re trading the euro, you’re trading a very choppy sideways asset. So therefore, I’m not looking for big moves. I’m just looking for a revisit of the next big figure.

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