EUR/USD Forecast – Euro Continues to See Sideways Action

Euro vs US Dollar Technical Analysis

The Euro continues to chop back and forth as we continue to see a lot of noisy behavior, but I also recognize that the market is likely to continue to look at the 1.11 level underneath as a major support level and the 1.12 level above as a major resistance barrier. In general, this is a market that I think will be very noisy, but I also recognize that it will also be a situation where a lot of this is just going to be a reflection of the risk on or risk off behavior. This is one of the biggest factors driving this pair more often than not. This is essentially “normal behavior.”

If we break above the 1.12 level is an area that I think if we break above there, then we really start to see a lot of pressure on the US dollar. On the other hand, if we break down below the 1.11 level, then the US dollar probably strengthens against most things, not just the euro. And you will see that as a signal for other currency pairs.

At this point, it’s worth noting that a few currencies are trying to break out against the US dollar, but there are a couple that aren’t, the Japanese yen being one. The euro? Not really breaking out. It really isn’t doing anything. It hasn’t been doing anything for about 6 weeks now. So, I think this remains very sideways and lackluster.

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