EUR/USD Forecast – Euro Continues to See Back and Forth Action

Euro vs US Dollar Technical Analysis

The Euro fell a bit during the early trading session on Tuesday as it looks like we are trying to drift to the next large round figure, which of course would be the 1.10 level. This makes sense. The market has simply been going back and forth from one big figure to the next. And at this juncture, I think it’s probably only a matter of time before that happens. If we reach the 1.10 level and we bounce, then you could be looking for the 1.11 level above as a potential target.

If we were to break down below the 1.10 level, then the 1.09 level could be a potential target for the sellers. Keep in mind that the overall attitude of the euro is simply just going back and forth because both central banks are likely to cut rates. In fact, the Federal Reserve is almost certainly going to be cutting rates here in a few weeks.

So really at this point in time, it’s a couple of currencies that when you look at it from a longer term perspective and you really zoom out on the chart, you see that we reached the top of the overall consolidation of the last two years and pulled back. Will we attempt it again? We don’t know, but if we break down below the 1.10 level, that shows just how lackluster the rally may end up being before it’s all said and done. If we can turn around and recapture the 1.11 level, that would obviously be a sign of strength.

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