EUR/USD Forecast – Euro Continues to Grind Higher

Euro vs US Dollar Technical Analysis

The Euro rallied slightly in the early hours on Thursday, but really at this point in time, I think you have to understand that we continue to have a lot of questions asked about whether or not we can actually break above the 1.12 level. In general, I think you’ve got a situation where if we can break out to the upside, there’s the possibility that we go to the 1.1250 level, and then after that, it becomes much more of a buy and hold scenario.

You’ll notice that every time we reach a large round, the psychologically significant figure on the chart, we also have a reaction. This is a market that’s just simply bouncing around between one big figure after another. It does have an upward proclivity. So, I assume that we will eventually break out, although it doesn’t have to happen right now.

But when you zoom out, you can see that we are close to a pretty significant top in this pair. Keep in mind that both central banks have cut rates as of late, although the Federal Reserve cut by 50 basis points, almost suggesting panic. That’s not a good thing either, so that might actually work against the euro if we really start to see the panicked train rolling. But at this point, I still think it’s more or less a buy on the dips at each and every big figure on the way down, with an eye on whether or not the risk appetite around the world is falling apart.

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