EUR/USD Forecast – Euro Continues to Look Weak

Euro vs US Dollar Technical Analysis

The euro has pulled back just a bit during the early hours on Friday as we continue to see selling pressure enter this market. All things being equal, I think you’ve got a scenario where the market is going to continue to look at the 1.09 level with suspicion. If we can break down below there, then it’s possible that the euro could drop down to the 1.08 level. A rally at this point in time is possible, but I think you have to worry about the 1.10 level as a major barrier.

After all, this is a market that does tend to move from one large round number to another. And with this being the case, I think you have to assume that sooner or later, one of these levels will give way and we could break out to a much bigger move. But when you look at the euro in general, you have to accept the fact that we are in an area that is important. But quite frankly, from a longer term standpoint, it’s just another barrier.

I think you have a couple of central banks that people are wondering whether or not they’re going to be able to continue on the same monetary path that they had priced in. So, there will be a lot of confusion. As things stand right now, it looks like the US dollar continues to strengthen, but I don’t necessarily think we will see a meltdown in the Euro itself.

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