EUR/USD Forecast – Euro Continues to Hang About Same Region

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth a little bit in the early hours on Thursday as we continue to hang above the 1.10 level. The 1.10 level is of course a large round psychologically significant figure and an area that will attract a lot of attention in general. That being said, the market is likely to continue to be very noisy due to the fact that both central banks are likely to cut rates going forward.

This is essentially back to the old race to the bottom that central banks do with their currency. So as long as that’s going to be the case, I don’t think there’s going to be any clear winner, but it does look like we have a little bit of a proclivity for buyers to come in and pick this market up on dips.

If we break below the 1.10 level significantly, then the next support level is at the 1.0950 level, which I consider a minor level, and then the 1.09 level. On the upside, the 1.11 level is a potential resistance barrier and therefore, I just don’t think that we slice right through it. I think it’s going to be a scenario where if we get up there and hang out for a while, we might be able to break out. But I think this is the action you have to get used to with the Euro. It’s just simply going to go back and forth between large round figures again and again.

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