EUR/USD Forecast – Euro Continues to See Big Figures Attractive

Euro vs US Dollar Technical Analysis

The Euro has drifted a little bit to the downside during the early hours on Tuesday, as we continue to see a lot of noisy behavior. With that being said, I think this is a situation where traders will be paying close attention to the overall attitude of the US dollar, I believe, and with that, I think you’ve got a situation where traders are just simply going from one large round figure to another, as is typically the case in this pair.

But we also have to keep in mind that it’s also somewhat based on sentiment. The US dollar, of course, is the world’s ultimate safety currency. So, if people are concerned about geopolitics, then they flood into the dollar and this pair not only goes from large figure to large figure, as you can see, we’ve just pulled back from 1.09. It can give you an idea as to how to trade other currency pairs around the world.

At this point, if we continue to break down from here, I do believe we will make it to the 1.08 level where I would expect to see support. If we were to turn around and recapture the 1.09 level, then we could eventually try to get to the 1.10 level, but obviously we are a little stretched over the last several weeks, so this little bit of a pullback does make a certain amount of sense in this market. The market will more likely than not be a situation where the noise will continue to offer short-term opportunities.

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