EUR/USD Forecast – Euro Continues to See Upward Move

Euro vs US Dollar Technical Analysis

The Euro rallied again during the trading session on Tuesday as we headed towards the Jackson Hole symposium at the end of the week. That being said, we are approaching the crucial 1.11 level, and that’s an area that I think a lot of people will be paying close attention to. It’s been important multiple times over the last almost two years.

So, the question is whether or not we can continue to go higher. And if we do, of course, that could kick off a huge move to the upside for trends. If we break higher, then we could go looking to the 1.1250 level, which is an area that has seen some action previously as well. All things being equal, this is a market that could be forming some type of rounding bottom, so that could be very impressive. I’m not convinced of the risk on rally myself.

So, we’ll have to wait and see. The daily candlestick so far is pretty nonchalant. There’s not much to it. The previous candlestick for the trading session was all about New York selling the dollar, risk on Uncle Jerome will be coming to save us all type of behavior. So, then the question becomes, are we starting to get overbought? And you can look at the relative strength index and you can see that we are overbought on the four hour chart and just started to get overbought on the daily chart.

So, this is something to pay attention to. While the reality is we may go higher in the longer term, in the short term, I think a pullback does make a certain amount of sense. Remember that on Wednesday, we get the FOMC meeting minutes so that could cause a little bit of trouble. But right now, it looks like Wall Street’s trying to push the Federal Reserve into cutting rates. Most of the time, the Federal Reserve will do whatever Wall Street tells it to. So, we’ll have to wait and see how that plays out.

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