EUR/USD Forecast – Euro Continues to Look Noisy and Lost

Euro vs US Dollar Technical Analysis

The Euro fell pretty significantly in the early hours on Monday as we are testing the previous lows. At this point, one major figure to another, and a breakdown from here could open up a move down to the 1.10 level. That’s an area that of course is a large round psychologically significant figure and a lot of people would be paying close attention.

On the other hand, if we do rally from here, I believe that the 1.11 level is going to offer a little bit of resistance that people will have to be paying close attention to as well as it has proven itself important more than once. All things being equal though, I believe this is a market that’s just bouncing around and looking for some type of directionality and quite frankly is not finding it. So, with that and the fact that we have in the next couple of weeks the FOMC, we also have the ECB.

So, I think both of those central bank meetings could really let you know in the way of which direction we are going. But in general, I think right now, traders are just trying to sort out whether or not there’s going to be any real strength or weakness in either one of these currencies. As long as both central banks look like they’re cutting rates, there’s no real reason for markets to move drastically in one direction or the other. Until then, expect more noise.

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