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

Euro vs US Dollar Technical Analysis

The Euro has rallied a little bit in the early hours on Monday, as we continue to see a lot of noisy behavior. That being said, the market is likely to continue to see a lot of resistance above as well. But I think what we’re basically going to be focusing on this week is going to be the interest rate decision on Wednesday coming out of the Federal Reserve and its effect on the US dollar.

That announcement is on Wednesday, so between now and then, you may see a lot of choppiness, but hopefully, at the end of the press conference for the FOMC, we will get some type of clarity on monetary policy. At this point, we have a lot of questions due to the fact that although the Federal Reserve has pretty much made it a clear rate cut coming on Wednesday, the reality is that we don’t know what the path of rates are going to be.

So, with that being said, I think this is a situation where anytime we pull back, there probably are going to be buyers with the 1.11 level offering a bit of a magnet for price. And if we break down below there, then the 1.10 level underneath is even bigger as far as support is concerned, which I think is probably a floor in the market. To the upside, the 1.12 level above is a potential target. If we break above there, then we could go quite a bit higher.

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