EUR/USD Forecast – Euro Continues to See Pressures

Euro vs US Dollar Technical Analysis

The Euro has been slightly negative during the trading session on Thursday, as we continue to see a lot of questions asked of the ECB and of course, risk appetite. At this point in time, the Federal Reserve has cut interest rates 50 basis points, but the ECB has also cut multiple times. In general, this is a market that continues to see a lot of questions asked about whether or not the central banks around the world will continue to cut whether or not there is a significant risk off move waiting to happen, which of course would favor the US dollar.

There are a lot of problems in Europe economically, and therefore this isn’t a huge surprise. But at this point in time, the numbers in the United States continue to come out a little hotter than anticipated. So, I think people are going to have to price in the Federal Reserve cutting rates slower than they initially thought they would.

Because of this, we probably continue to see a little bit of negativity in the euro itself. If we do rally from here, we’ll have to pay close attention to the 1.10 level as it was previous support and resistance, I would expect market memory to come into play. Either way, I don’t have any interest in buying the euro until we are back above that level. So, with that being said, I’m more or less just using this currency pair as a proxy for the US dollar index so I can get a read on trading the dollar against other currencies.

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