EUR/USD Forecast – Euro Continues to See Sideways Action Overall

Euro vs US Dollar Technical Analysis

The Euro has risen a bit during the early hours on Thursday as we are starting to see risk appetite pick up just a bit. And that of course works against the dollar most times, just as we are seeing right now. The market does seem to be hanging around the 1.11 level. This is an area that, of course, is a large round psychologically significant figure.

So, it makes a certain amount of sense that we might have a reaction here. But if we rally significantly from here, the next target is almost certainly going to be the 1.12 level based upon the action that we have seen recently. A pullback from here is certainly possible, but I think the 1.10 level underneath will be a significant short-term support level.

Keep in mind this pair is backed by a couple of central banks that are both going to be loosening monetary policy over time, but right now it seems like everybody is trying to price in the Federal Reserve cutting rates and quite aggressively. Whether or not that’s going to be true remains to be seen and if they do, ironically it could turn things around as traders would start to panic about the overall global situation. Right now, though, I think we’re just using the 1.11 level and that’s a bit of a fulcrum price, and we may just go back and forth using that as an anchor for where we go next. All things being equal, this is a market that I think is probably still somewhat neutral with a slightly upward bias.

For a look at all of today’s economic events, check out our economic calendar.