EUR/USD Forecast – Euro Continues to See Buyers on Dips

Euro vs US Dollar Technical Analysis

The Euro rallied a bit during the trading session on Friday, as it looks like we are trying to get to the middle of the overall consolidation area between the 1.08 level and the 1.09 level. At this point, we are going to be paying close attention to what inflation is doing in the United States, perhaps in the core of the PCE numbers but it’s worth noting that inflation in Europe was a little hotter than anticipated, but really at the end of the day, I think we are just stuck here because we really don’t know what to do with ourselves.

We have an ECB that could cut in July, possibly even June, but the Federal Reserve, every time we think that they are backs against the wall going to have to cut, it appears that some inflationary number comes out puts the whole thing into flux. So with that, I think we have a lot of uncertainty and I think we’re going to stay in this 100 point range.

That being said, if we could break above the 1.09 level, it does open up the possibility of the 1.10 level being targeted above. If we break down below the 1.08 level, it opens up a move down to 1.0750, possibly even 1.07. Either way, I’m fairly neutral on this pair at the moment, and typically will just use the chart as a way to sort out where the USD might go in various markets in the FX world.

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