EUR/USD Forecast – Euro Continues to See Pressures to The Upside

Euro vs US Dollar Technical Analysis

The Euro has rallied pretty significantly during the last couple of sessions, but the Euro is a little stagnant in the early hours of Friday. Eventually, I think we probably could go looking to the 1.12 level above, which is a large round psychologically significant figure, and that significant figure of course will attract a certain amount of attention. If we can break above there, then the 1.1250 level above is a significant resistance barrier as well.

In general, I do think that we are in a situation where we are getting a little stretched. So, we’ll have to wait and see if we turn around. But even if we do, I think that the 1.11 level underneath will be an area that I think a lot of buyers look at as potential support. The Federal Reserve cutting. Interest rates by 50 basis points should continue to drive down the value of the dollar, at least in the short term.

But if it ends up being perceived as a sign of fear and panic, that could have people running towards the dollar for safety. I think we’re just going to be stuck in this sideways action in the short term, and therefore I think probably not look too much into this market for big moves. I’m more or less looking at it as an indicator of US dollar strength or weakness during the trading session.

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