EUR/USD Forecast – Euro Continues to Meander and Look for Clarity

Euro vs US Dollar Technical Analysis

The Euro was somewhat flat in the early hours on Friday as we waited for the Core PCE Index numbers. That being said, this is a market that has been in an uptrend and then pulled back. But the one thing that I noticed when I look at the euro is the fact that we continue to go from one large round number to another. The market has bounced from 1.09 to 1.10 to 1.11 and so on. One thing that is worth watching is that the 1.1250 level above is a massive resistance barrier and we did pull back from trying to get there.

Whether or not we stay on this trajectory remains to be seen because people are betting on the Federal Reserve cutting rates. And even though they probably will, the reality is we also have to be cautious about the fact that the ECB has already cut. So ultimately this is a market that I think given enough time we will have to determine whether or not there is a real difference.

I think we have probably priced in the Federal Reserve cut. So now I think we have a situation where we are just floating around, trying to sort out where we are going. And with this, there’s just no real clarity. And I think we continue to just ping around from one large figure to the next. I don’t think anything changes.

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