EUR/USD Forecast – Euro Continues to See Noise at Big Levels

Euro vs US Dollar Technical Analysis

The Euro has been bouncing around the 1.10 level, showing signs of uncertainty as we have gotten a bit stretched. And at this point, I think it is a market that when you zoom out, we could go all the way to the 1.11 level, but if we break down below the 1.0980 level, then we could pull back to the 1.09 level.

We have been forming a bit of a rounding bottom for a while, but when you zoom out to the higher timeframes, you recognize very quickly that we’re at the top, or getting close to it, I should say, of the overall range for the last couple of years. So, because of this, I am still fairly hesitant to get overly aggressive. A lot of this is going to come down to whether or not the Federal Reserve cuts rates aggressively.

There is an argument to be made that the market has gotten far too ahead of itself, and therefore I think the upside is probably limited, at least for the time being. If we do break the 1.11 level, then it’s likely that we will go much higher, but that also probably coincides with the Federal Reserve finally throwing their hands in the air and suggesting that there are going to be multiple interest rate cuts. While this may or may not happen, it is worth noting that Americans continue to spend quite a bit, and this will make the Fed a bit more hesitant to “go nuclear” with rate cuts.

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