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

Euro vs US Dollar Technical Analysis

The euro rallied a bit over the last 24 hours in the early part of the Wednesday session. At this juncture, the market looks as if it is trying to break a bit to the upside and perhaps even try to go to the 1.11 level. But we also have to keep in mind that the CPI number and then the PPI number come out of the United States.

In that environment, it could cause a lot of noisy behavior. I do believe that the 1.10 level underneath is massive support. And I do think it is a large round psychologically significant figure as well. The 1.11 level above is a potential target. And I think it is worth paying close attention to because it has been both support and resistance.

When you look at the longer term charts, the euro is pretty much range bound, despite the fact that we have been at the top of the range for the last couple of years. This is a especially apparent when you start looking at the last two years in terms of the weekly timeframe. If we can break above the 1.12 level, then we can really get going. But right now, I think this remains an argument between two central banks that are cutting rates. And that’s why you see a bit of hesitation. It probably favors the upside, but not drastically so at this point.

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