EUR/USD Forecast – Euro Continues to Look For Momentum in Quiet Trading

Euro vs US Dollar Technical Analysis

The Euro has gone back and forth in the early hours on Tuesday as we still look for some type of momentum. This does make a little bit of sense considering there’s so much of a lack of economic numbers at the moment that I don’t think there’s a whole lot to move the market. It is worth noting that the 1.10 level is underneath and it should more likely than not at least offer a little bit of interest for those trying to look for support. Breaking below the 1.10 level would be a negative turn of events, perhaps opening up a drop down to the 1.09 level. This of course would be a massive “risk off move” for the markets in general.

On the upside, we have the 1.11 level, which should offer significant resistance, as the market has recently moved from one big figure to the next, although it does look like we are at least attempting to form some type of double bottom currently. The market will continue to look at this through the prism of two central banks that are looking at rates and therefore it comes down to who’s going to do it more aggressively. The ECB has already cut. The Federal Reserve is likely to cut here in the next week and a half or so and at this point in time it will come down to forward guidance. I suspect we are going to continue to see a lot of back and forth chop.

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