EUR/USD Forecast – Euro Continues to Grind Away

Euro vs US Dollar Technical Analysis

The Euro has gotten a little stretched at this point, and it looks like in the early hours on Monday we might be getting ready to pull back just a bit. That being said, I don’t necessarily think that it is going to be a very deep pullback. I think this week’s going to be a little quiet when it comes to much in the way of economic figures, and therefore, we’re probably just going to be looking for direction. I suspect this market is going to continue to look at the 1.10 level as a bit of a magnet for price. If we do break higher and above the 1.1050 level significantly, then we could go to the 1.11 level. But at this point, I think we are getting a little bit late in the rally.

Now, does that mean that we are going to break down rather significantly? I don’t think so. I think we’ve got a situation where the market is just going back and forth between the idea of will the European Central Bank cut again? Is the Federal Reserve going to cut? And for that matter, how much? There are a lot of questions out there and that makes a lot of sense that we would continue to see a lot of sloppy trading.

When you zoom out and look at the chart, this is an area that previously has been significant resistance. So, I don’t know how much more upward pressure that we’ll see, or at least I should say, I don’t know how much further we can go. So really at this point, I think we’ve got a situation where we just chop back and forth in short-term range bound trading.

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