EUR/USD Forecast – Euro Continues to See a Drift Lower After Rally

Euro vs US Dollar Technical Analysis

The Euro, as you can see, dropped a bit during the early hours on Wednesday, as it looks like we are hanging around just above the crucial 1.11 level. This is a pair that has been going from one large round number to another. And the 1.11 level is likely to continue to attract a certain amount of attention. But if we were to break down below there, it’s likely that we could see this market drop down to the 1.10 level.

On the other hand, if we turn around and bounce from here, the 1.12 level could be resistance breaking above there could open up the possibility of a bigger move. That being said, there are a lot of questions about what’s going on with central banks around the world with the Federal Reserve of course likely to cut. But you know, let’s not forget that the European Central Bank has already cut a couple of times.

So, with that being said, I think you’ve noisy monetary policy situations. And therefore, even though it has been very bullish for the Euro, the reality is that just above the current trading area, somewhere near the 1.1250 level, we have seen a major top previously. So, I think we are stretched, we are pulling back. And now we are going to have to figure out whether or not there are going to be buyers underneath. Regardless, it’s probably going to be at a large round psychologically significant figure.

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