EUR/USD Forecast – Euro Continues to Look at Big Figures

Euro vs US Dollar Technical Analysis

The Euro has done almost nothing during the early hours on Tuesday, which isn’t a huge surprise. There’s not a lot of economic news out there to push the markets around, and we have to keep in mind that the market is a little stretched. That being said, it’s worth paying close attention to the 1.11 level underneath, as it is a major area of importance on the four hour chart, as well as the daily chart.

If we were to break down below there, then the market could drop to the 1.10 level underneath. In general, this is a market that I think continues to have a lot of noise and a lot of sideways action. And that makes sense because both of these central banks are going to be loose with their monetary policy.

So, although the Euro has really taken off recently, the reality is that it’s probably already somewhat fairly priced. We’ll have to wait and see because the 1.1250 level above is a massive resistance barrier, breaking above that would then send the euro much higher. In general, I think we’re just bouncing around between one big figure after another. So, on the upside, we tested the 1.12 level and then pulled back. Underneath, the 1.11 level has been support, etc.

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