EUR/USD Forecast – Euro Continues to See Big Figures as Magnets

Euro vs US Dollar Technical Analysis

The Euro has basically been sideways most of the early hours of Wednesday as it just doesn’t seem like there’s a whole lot going on. That being said, I think it does make a certain amount of sense that we will continue to see a lot of back and forth sideways action going forward, mainly due to the fact that we are in a battle trying to sort out whether or not the Federal Reserve is going to cut rates and whether or not the European Central Bank will continue to do the same. Whether they do or not will remain to be seen, but at this point, we could see central banks all racing to the bottom when it comes to interest rates.

Quite frankly, the other thing to keep in mind is that the summertime, especially late summer, tends to be a little bit more choppy, mainly due to the fact that a lot of the big traders are away on vacation. So, it does sometimes get a little quiet. The market seems to be heading back and forth between big figures in the form of 1.10 above, 1.09 right about where we are now, and 1.08 below.

Simply put, if we do break down a bit, we could go to the 1.08 level. On the other hand, if we bounce from here, the 1.10 level could be your target. When you look at the longer term charts, the euro is essentially sideways for the last two years or so, just going from one of these figures to the other. So, trade accordingly.

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