EUR/USD Forecast – Euro Continues to See Upward Momentum

Euro vs US Dollar Technical Analysis

The Euro initially rallied during the trading session on Tuesday, pulled back, and then rallied again. Ultimately, this is a market that I think is going to try to rise into the FOMC meeting on Wednesday, as we are anticipating that the Federal Reserve will cut interest rates by 25 basis points, and now people are even pressuring them to do 50 basis points.

At this point in time, it looks like that’s what people are aiming for, bullying the Fed into cutting rates, and eventually they’ll get what they want. But I don’t think they’ll get massive cuts. I think they’ll get 25 basis points at a time, because quite frankly, if the Federal Reserve cut quicker than that, it could cause a bit of a panic.

At this point in time, it looks like we are going to continue to see buyers on dips with the 1.12 level above being a potential short-term target. Underneath, we have the 1.11 level as a potential support level, and anything below there could open up a move down to the 1.1080 region, all things being equal, this is a market that is trying to go looking to the upside, but I don’t know that we are going to continue to shoot straight up in the air.

That being said, I also recognize that the volatility will probably continue, not necessarily abate. Because of this, you need to be careful with your position sizing and therefore understand that have a situation where leverage will be a major concern.

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